I can help you with stock chart reading

hi vv, some little birdie told me that stocks which hit 52 week high are more attracted to go higher. And same is case with 52 week low, they tend to go lower. How far is this true????

See chart with settings

1. Weekly
2. Year duration.

You will see the downtrend is intact. May be its starting a new trend. But look at BANKNIFTY and compare. This stock has been lagging like YESBANK. Right now banks are as high as there were in May before the fall. Watch BANKINDIA, PNB, ICICIBANK, SBIN.

I would avoid the stock for now.

Isn't that true. A stock will hit 52 week high because its got demand. Every one wants to own it. That is the reason its going up. Similarly, a stock is 52 week low because no one wants to have it. All of them are selling it. Ofcourse, this understanding is at high level.

That is one reason you see websites recording stocks that hit 52 week high and 52 week low. Sometimes, there is speculation that can drive the stocks up. Once that speculation is over, stock drops like a thud.

thanx 4 ur view on 52 week hi/lo vv.
Regarding the same till what level can we expect the prices to go up/down.
i.e, till what level might the stock go up/down. Can that be predicted as such?
Infy hit an all time high of 1855 and is now going down for 4 continuous sessions.
When do u think i shuld exit/take profit of this position? Still steam left?

Do u think that giving a long for a stock that hits 52 wk hi is wise? and short selling 52 wk low stock????
Thanx Again.

is there any stopping for CLASSIC DIAMONDS.
Its hitting the roof..... again and again and again...!!!!

VV says avoid. But some news

Indusnind bank is being taken over by ABN AMRO Bank. There has been a
huge open interest building up on the futures side. It has a target of
55-60 in the coming week. start accumalating and earn huge profits.

If U think about it, it works both ways. Lets do the 52 week low again.

Everybody is selling. Stock has been falling for long time. After some time, a stock is worth something that reflects the companies value: its cash flow, technology, real estate etc. So, at that point, is it worth going and shorting. Why do we want to sell a stock when its value is equal or less to that of the company.

Similarly, a value of stock as it goes up happens in 3 stages. In the 1st stage, the value is less than the fundamentals of the company. At this point only few people know about this fact. In the 2nd stage, value is equal to the company's fundamentals. In the final stage, value is greater than the company's fundamentals. The final stage is called the speculation stage. Everybody knows about. Like the stock CLASSIC. Recent example is also GOLD prices.

http://bigcharts.marketwatch.com/int...x=32&draw.y=10

Speculation stage is a good and bad. Good because the stock price increases faster as many people know about. Bad because, sooner or later, there will be correction as the prices get too out of hand. Those people who join late will be hurt. How do you know this stage. From TA point of view, the momentum should tell. From fundamentals, Trailing and Forward P/E of the stock compared to industry and other stocks in the industry.

As I said in earlier posts, its very hard and risky to catch bottom and top. U may forsee stock or market is going to fall. Timing it is very hard. Rather approach it based on your objectives. Be it either entry or profit taking.

Even though 52 week high is good for buying, the risk to reward is much better if you buy close to 50 day EMA. This also depends on the general market. Before May downfall, if you were waiting for a stock to buy at 50 day EMA, you would have been waiting for ever. Right now, most of them are trading close to 50 day EMA. So, there is no straight answer.

This market has been going up. Inspite of that, there are some elements that need improvement. Specially, VOLUME. Also, I see stocks rolling off or going sideways. Rolling off in IT sector: WIPRO, SATYAMCOMP, INFOSYSTCH. Sidways in most of the stocks. Is it consolidation or leg down. Only future can tell. Lets wait for the signs.

Dear VV,
What does "rolling off" actually mean?

Hi

could u pls advise what indicators can help to forcast the next movement of a scrip. i am a day trader, could u pls tell is there any co-relation statisticks among prev.close,todays open,todays high,todays low and last trade price.
normally in my day trading before reaching the target my stoploss is trigerring. may be due to lack of experience.

pls help

babs

HI VV,

How are u? Long time I ahve not posted here. U say we should also evaluate the group the stock belongs too. Once question how do u find which group to look into. I am following the stock of JBF INDS. It is into hand made fibre. Now which group charts should i see to see how the group doing as a whole and also find other stocks in that group. Also, if there is any site do let me know.

Thanks

Rahul

It belongs to
Industry: Spinning: Cotton/Blends
Sector: Textiles

Here are some links where U can find the section info.
http://alpha.myiris.com/shares/sectors/
http://www.ndtvprofit.com/bb/default.asp?Pass=Indices
sify website

Rolling off
Not able to sustain the trend. Neither going sideways. Look at WIPRO. 520 looks so formidable. Its been trying so hard to cross for last 2 months. SATYAM and INFOSYS are going below the trend. Either they are going to test 50 day EMA or ?. More troubling is their ever reducing volume. This is what I see. U try whether U can see it differently. Because, we see what we want to see!!!