I can help you with stock chart reading

vvonteru · #**141** 17th April 2006, 06:23 PM

Market: It was a nice come back. Lets wait for the follow through.

So can we say that the Key here is an unsuccessful attempt to breach the support levels, after a breakout?
--- Ya. We are looking for a pull back. We want to make sure that pull back does not go back to previous point from where the breakout has happened. If it does, they call it a false breakout.

Kale Consultants at 105
--- This stock has baggage. Look at the chart for 7 years.
Currently, the stock has taken out 103 short term resistance. It has another resistance at 120. A six month chart shows a pattern called "Cup and Handle" with 2 bottoms at around 80 level. Look at how much time it took to go to 80 second time (almost 3 months) versus, how much time it took to come up to 103 (2 weeks).

Its not an ideal chart I would recommend. But, there is something going on for the stock. If you believe in Cup and Handle pattern, please wait for the handle (pull back) to form. Give it couple of days to enter above the pull back. Make sure it does not go below 103 when U enter.

gracec · #**142** 17th April 2006, 10:24 PM

Thanks again!
Reliance.... as advised if I calculate it as below:
at the time of selling at 832.5 the s/l should be 783
now that it is increased to 851 which is Rs 19 increase, Now I can add it to 783 to trail the stop loss. Hence I get the number 802. but to trigger it at 806.
am I correct?
kindly advice
thanks & regards
Geeta

Quote:

Originally Posted by vvonteru

Only left with Reliance bought @783
sold 50% @832.5
--- Excellent. Follow on every trade. The key is repeating a theme that U have chosen.

Today read your complete thread and learnt many lessons. Based on that I have chosen Jindal stainless steel to enter.
I have also placed orders to limit purchase
Ultracemco @ 712
BataIndia @ 222
--- Please. I have said in most of my recent replies to look at the MARKET (NIFTY/SENSEX). They are falling as rocks right now. Wait for them to improve. If not, you will be catching a falling knife. Do not make new entries. We will have lot of opportunities

About my email:
If you have questions, please put in the forum. Others will learn from the replies. If you insist, then send me a email to rreddy05@yahoo.com. Before you ask me any questions, I suggest going through the thread. I have articulated most of my learning, techniques, methodoligies and money management info.

gracec · #**143** 17th April 2006, 10:27 PM

Thanks Balaji for the link, but it is an RAR file, I can't open it.
could you please advise.
thanks
Geeta

Quote:

Originally Posted by pnbalaji

Hi Sanjay,

You can find many such books at the below link

http://savefile.com/projects.php?pid=282274

Thanks,
Balaji.

vvonteru · #**144** 17th April 2006, 10:46 PM

Quote:

Originally Posted by vvonteru

Thanks again!
Reliance.... as advised if I calculate it as below:
at the time of selling at 832.5 the s/l should be 783
now that it is increased to 851 which is Rs 19 increase, Now I can add it to 783 to trail the stop loss. Hence I get the number 802. but to trigger it at 806.
am I correct?
kindly advice

By the no.s given by you for stop loss, I think you are taking it too arithmetic. We need to go by the chart. I suggested 815 to 820 level for stop loss because of the base, which is below the average low of couple of day prices. Print the 6 month chart (if you can), put it on the floor. Standing, look at the chart and see where is safer to put the stop. Thats the test. Don't go into details. If we micromanage, we will lose the longer play. Our objective is to get the max out of the trade.

I have said earlier, we shouldn't prejudge the market. Thats the reason, we shouldn't come out of existing positions. The reason is, there is always be noise. That shouldn't change our existing plans. But, for new plans (entries), we definitly want to see better conditions.

With 1 day upside, the market has changed the charts. I now feel, probably, the previous downside was a deeper pullback. This can happen intermediate to several smaller pullbacks. From our perspective, can we take new entries considering the market was a pullback. I see several stocks that have better charts because of today. Look at ITC (enter at 197), Bata (@238), Satyamcomp (@850), Wipro (@555) and several other. Ofcourse, in order to trigger these stocks, the market has to follow through.

Czar · #**145** 18th April 2006, 08:34 AM

Hi - please can you advice on bharat bijlee (bbl) and financial tech. (fintech) charts for short and longer term, thanks

SGM · #**146** 18th April 2006, 08:51 AM

Quote:

Originally Posted by gracec

Thanks Balaji for the link, but it is an RAR file, I can't open it.
could you please advise.
thanks
Geeta

Hello geeta

It calls for another down load

. I had to do the same. There would be many free softwares to unzip a rar file, i downloaded WinRaR from here http://www.rarlab.com/rar/wrar36b1.exe

Regards
Sanjay

kuldeep49 · #**147** 18th April 2006, 03:55 PM

Quote:

Originally Posted by vvonteru

Market: It was a nice come back. Lets wait for the follow through.

So can we say that the Key here is an unsuccessful attempt to breach the support levels, after a breakout?
--- Ya. We are looking for a pull back. We want to make sure that pull back does not go back to previous point from where the breakout has happened. If it does, they call it a false breakout.

Kale Consultants at 105
--- This stock has baggage. Look at the chart for 7 years.
Currently, the stock has taken out 103 short term resistance. It has another resistance at 120. A six month chart shows a pattern called "Cup and Handle" with 2 bottoms at around 80 level. Look at how much time it took to go to 80 second time (almost 3 months) versus, how much time it took to come up to 103 (2 weeks).

Its not an ideal chart I would recommend. But, there is something going on for the stock. If you believe in Cup and Handle pattern, please wait for the handle (pull back) to form. Give it couple of days to enter above the pull back. Make sure it does not go below 103 when U enter.

Thanks for your analysis. It is correct that this stock has something going on. It has sold some of its other business lines over the last 2 years to concentrate on the airline business. I have attached the funadamental analysis of ICICI Direct. Doesn't this clarify your reservations? I know that you do not advocate looking at anything other than charts, but sometimes a look into the fundamental analysis gives an insight into the chart behaviour. Do let have your comments. The attached file has been zipped to conform to the forum's upload size restrictions.

pnbalaji · #**148** 18th April 2006, 04:01 PM

Quote:

Originally Posted by gracec

Thanks Balaji for the link, but it is an RAR file, I can't open it.
could you please advise.
thanks
Geeta

Hi gracec,

There are many freewares available for uncompressing zip and rar files. I use a great small freeware called filzip (www.filzip.com). I mostly work with .zip,.rar, .cab, .gz and filzip is enough for me.

I don't like winzip or winrar as they are sharewares. I personally prefer freewares rather than sharewares or trialwares.

Try and let me know.

pkjha30 · #**149** 18th April 2006, 05:09 PM

Quote:

Originally Posted by pnbalaji

Hi gracec,

There are many freewares available for uncompressing zip and rar files. I use a great small freeware called filzip (www.filzip.com). I mostly work with .zip,.rar, .cab, .gz and filzip is enough for me.

I don't like winzip or winrar as they are sharewares. I personally prefer freewares rather than sharewares or trialwares.

Try and let me know.

HI
You may try 7-zip also. supports most of the compression formats and free too.
Pankaj

vvonteru · #**150** 18th April 2006, 05:47 PM

bharat bijlee (bbl)
This is a good pick. Enter at 1350 with a stop at 1200 (based on current price). If goes down more, U have to think about. It is at reflection point. My bais is that it may be going down. Reason, 2 days of market highs didn't not effect this stock.

financial tech. (fintech) charts ---
The stock is also at inflection point. If it goes below 1600, don't touch it (Unless it is just noise and it comes back). Enter at 1780, with a stop at 1580 (top of previous trading range). If U can't take 200 points loss, don't go for this stock.

for short and longer term ...
Please explain what U mean by these terms. If you are losing badly would U keep in long term case? Or if you are making money, U will sell because U thought it was short term!! I don't believe in short term or long term. I look at a stock's chart. If its good and has an entry point I enter. I give it a chance with a stop loss. If it hits, I come out. I can't take the pain thinking this is long term. Similarly, if its winning, I ain't stupid to come out.

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