Trading With Chart Pattern

[Ank!t007]

Hi Nick,
Thanks for your wonderful work.Its been very useful for me.My question is about PTC. Has the quarterly chart formed a double bottom pattern ?

Chart Source icharts.in

Thanks,
Ankit

 

[RSI]

Hi Ank!t007,

Observe PTC chart carefully. If you are in doubt look at the higher timeframe chart. In your case weekly chart. If you look at weekly chart you will notice that PTC had a very strong breakout around Rs. 70/- mark during 20 July 2007. Now you can expect this level to act as support, if the price were to go down to that level.

Immediate support is the level noted by you as double bottom. Though the first bottom is sligthly lower than the candle marked by you in the chart.

But look at the candles that have formed subsequently to the candle marked by you as the second bottom. What do you notice? Basically price was unable to move up inspite of repeated attempts made over several days. Observe where price closed on all these days. They closed around Rs. 87/- to Rs. 90/- So after testing a support the next upward movement is weak. Therefore it is testing the support again. Will it go up or down now? That is the important question. Action is not clear. So stay out and watch.

 

[knag]

Hi,

It will go up now. Short term target is 95.

Thanks,
knag

 

[nick721156]

Hi Nick,
Thanks for your wonderful work.Its been very useful for me.My question is about PTC. Has the quarterly chart formed a double bottom pattern ?

Chart Source icharts.in

Thanks,
Ankit

dear ankit,

the chart posted by is not forming a double bottom.

regards,

nick

 

[Pchartis]

Here i had attached daily chart of nifty. it shows big support at 4500. My query is if nifty get this support and bounce back what will be its resistance level. I have drawn a line at immediate pivot highs which I think will be resistance points. But many analyst say it would be near 4830. How come this point they come out with ie. what is the basic behind it?
Similarly many analyst announce support and resistance level which is not any pivot point high or low on charts.So how o arrive at perfect support and resistance level?
Regards

 

[moneygurukul]

Here i had attached daily chart of nifty. it shows big support at 4500. My query is if nifty get this support and bounce back what will be its resistance level. I have drawn a line at immediate pivot highs which I think will be resistance points. But many analyst say it would be near 4830. How come this point they come out with ie. what is the basic behind it?
Similarly many analyst announce support and resistance level which is not any pivot point high or low on charts.So how o arrive at perfect support and resistance level?
Regards

Various resistence lines are marked here. NIFTY may have stiff resistence on 1-2-3-4-5 line & 10-7-10 line. The exact level will depend upon the pace of upswing but 4865 is the meeting point of these two lines and hence may show good resistence.

There is no perfect Support/Resistence levels, it's merely a guess based upon past behaviour which may or may not hold.

 

[AW10]

Various resistence lines are marked here. NIFTY may have stiff resistence on 1-2-3-4-5 line & 10-7-10 line. The exact level will depend upon the pace of upswing but 4865 is the meeting point of these two lines and hence may show good resistence.

There is no perfect Support/Resistence levels, it's merely a guess based upon past behaviour which may or may not hold.

On downtrend, I see the support around 4450 level where market changed the direction in july/07 /Jan-08 / Mar-08.

Regarding resistence lines that you mentioned, I will give more weightage to 1-2-3-4-5- line because it has more number of "Touch" and it traces back to period longer then any other line. Ofcourse, other resistence lines are also valid.

 

[sriramvr]

Dena bank weekly : H&S formation taking place in uptrend. volume part is almost agreeing the pattern. neckline is inclined downward. will go down.

asking for comments.

regards,

nick

volume on the left shoulder should be the highest than the head and right shoulder. however in dena bank, the vol. on LS is lower than head and RS. How is this head and shoulder pattern then? Pls. confirm.

 

[Ank!t007]

Both RSI and Nick,
Indeed thank you very much for your explanation.

Observe where price closed on all these days. They closed around Rs. 87/- to Rs. 90/- So after testing a support the next upward movement is weak. Therefore it is testing the support again

Today it made a low of 82 so it broke the weekly support of 85 but interestingly sudden buying came and closing was around 87 and if you see the chart you will notice a green lower bar so does the stock is in intermed downtrend ?

Thanks,
Ankit

 

[RSI]

Today it made a low of 82 so it broke the weekly support of 85 but interestingly sudden buying came and closing was around 87 and if you see the chart you will notice a green lower bar so does the stock is in intermed downtrend ?

Thanks,
Ankit

Stock trading requires tons and tons of patience. It requires the courage to giveup a few rupees gain and courage to sustain a few rupees loss. If you are a swing trader, please watch very closely before jumping in. There will be many false moves to suck in weak hands. Price-volume-time is a terrific combination. Mastering it requires great deal of study and attention and more importantly courage and patience.

If you look at the chart, you will notice that PTC started downtrend from around Rs.200/- on 04/01/2008. Pricewise it has corrected a good deal. But has it formed a bottom? Are you sure? That is the question to be answered BEFORE buying. How can you say that it has formed bottom? Usually there will be sideways consolidation and then a breakout. I have posted a imaginary chart in Kartik's thread TechViews explaining the tree places to enter in to a trend. If you have not seen that, I request you to see that now.
Hope this helps
Thanks and regards
R. S. Iyer