I can help you with stock chart reading

Can be seen that way. If we do believe downtrend is going to start, what is our condition for shorting and when will we exit?

Shorting Condition
8 day EMA is testing 50 day EMA for nifty and sensex.

OR MACD crossing down (this will come little late)

Exit Condition
If 8 day EMA will cross up 50 day EMA, will get out.

OR if you use MACD crossing, then getout if crosses back up.

Profit Target
Previous Low will be your first target. Obviously, if it did reach there, I am sure it is going down more.

I must admit, this is low risk and high reward play. But, make sure you do exit if indexes cross or some other criteria as set by you before you take position. Remember when trying to determine turning points. Run on the first sign of trouble. Don't wait and hope.

On another Note based on U.S markets crashing:
Be careful on the long side. Its ok to miss an entry. If the market continues to go up, we will find lots of entries. Its better to be wrong than lose money. Or you could play with smaller position.

thank you sire, appreciate it.

GE Shipping
-- I don't like the poor close on Friday. That may be due to general market sell out. If not the stock is looking good. Like all the leaders, it is in decisive stage. Wait 1 more day to see better closing. Enter above 240 to be safe.

SCI
-- I like GE Shipping better. 1 more down day will make MACD crossing down. So, decision time. If you want to enter this stock, only do so at 145. If the stock doesn't make it to 145, we will not be interested in it.

P/E low
-- I have no fundamental reason why some industry stocks have low P/E ratio. It may be that the investors don't see multiplied growth quarter after quarter or year after year. What is important is, when you compare P/E ratio, compare stocks with in a industry (probably U already know about it).

Ansal Properties
--Can you give me BSE code
Zee Tele
-- Looks very good. May pull back in the next couple of days. 265-270 is very close. If that is your profit target, CMP 260 is not far. Don't split hairs over couple of points.

Reliance
-- That was huge pull back. RIL volatility is 47. On friday, High - Low = 68, with a reversal, opening at high and ending close to low. It took 5 days to go from 1020 to 1100. It took 1 day to come back from 1100 to 1020. This tells you the balance of power between upside and downside. Sometimes, this may be in the heat of over all market and just fade off next day. So, in these conditions, we wait for next day or two to see if the stock recovers and is in pull back mode rather than sell mode. All this text is for new entry. If you are already there, your stop is in place. If the stock hits the stop in the next couple of days, you are out. Let the market hit the stop rather than you take it off. Why, because, no body knows it is going down until it goes down. Daily noise should not make you change previous plans.

Dabur
--It had reversal too. But, not bad like RIL. Today I was looking at the volume. On the upside, volume is low, compared to the May month's downslide. Thats something to take note off. Even though there have been 7 days of pull back, there has been not much downside in the last 3 days. An entry above the high of last 3 days + x is still valid. Do consider the low volume discussed before.

Reliance Communication
-- iCharts.in is showing wrong data for RCVL. I will get back to you on this one.

Thanks VV,

Appreciate your responses. For a fresh entry in RIL, do you think this is a good time or should one wait longer. How can one read from the charts how much a share will pullback, as you mentioned RIL moved back to 1020...were we expecting this from the charts.

Dabur kind of shares scare me from a day trader perspective - the range is limited. Strong share with low volatility - guess i am missing something here, can you help.

Thanks,
Rohit

Given the drawdown in RIL on Friday, it is prudent to wait for 1 more day. If it recovers on Monday, we will revisit it.
How much pullback? I currently do not follow %. I just eye ball the chart. Looking at a chart, I can tell if it is just a pull back or sell off or can go either way. When it can go either way, like RIL, I wait next trading day for more light.

I agree with you that Dabur is not suitable for day trading.

My suggestions are not for day trading. They are for short term trading, holding for couple of days to weeks.

Mawana Sugar is exhibiting a pattern called Fish Hook. In the recent book by Elder, he mentioned that he likes to trade this pattern. The confusion is your reason to buy. You used fundamental reason to buy. But, you are looking for a technical reason to sell.

Technically, you could buy this stock if
1. It takes out 2 days high. or
2. If the Slow Stochastic crosses up and MACD does not cross down

I will look to sell the stock if
1. Takes out my stop based on 3 * ATR, if I used point 1 to buy.
2. If MACD crosses down, if I used point 2 above to buy.

See, when you enter a stock, you need an exit strategy. An entry will never determine whether you make a loss or profit. An exit will!!!. Inspite of this information, most of us only concentrate on Entry than Exit.

Having said the above, I will take this trade based on positive MACD, coming out of divergence. From here on, it depends on the general market condition. If the market continues to go up, you could see this stock going up from pull back.[/quote]


Thanks VV for your insights...though i dnt know how to calculate the various levels still i have understoos one basic thing that is I should have an exit policy for every position that I take....

Can you please let me know and set my small portfolio right:
ITC- 15 @ Rs.183
Neyveli Lignite -16 @ Rs.81
SAIL -20 @ Rs.86
Shivalik Global- 20@ Rs.60

Assuming that you are asking me in terms of short term trading, here is my take

ITC
--Look at the chart. I was not confortable with the narrow channel. That doesn't mean it will not go up in that channel. Observe there is an outlier channel. Friday draw down was due to market in general. If it goes down below Friday's low, I would be little concerned. If it does, may be it is changing the narrow channel trend or it is going down. That only time is going to tell. As long as 8 day EMA is above 50 day EMA, our bias should be upwards. Try the chandelier stop 159. ITC ATR (Average High - Low) is 9. At stop of (range between 2 to 3) * ATR should be OK. Chandelier uses 3 * ATR.

Neyveli Lignite
--Use stop of 51. I think you are hoping on this one rather than trading. Next time, use this small piece of advice to avoid these kind of situations. Never have a long position if 8 day EMA is less than 50 day EMA. Using this, you will avoid lot of bad mishaps. Once you become a pro, U can start looking at oversold conditions to go long, inspite of 8 day EMA less than 50 day EMA.

SAIL
--You bought at the recent high. RHK asked me about importance of pullback. You could see what happens when you buy at high. When the stock goes against you temporarily, you are a bit uncomfortable. Ur risk is more than when you buy at pullback price. Try stop 67.

Shivalik Global
--Put a stop below June 14 low.

On ITC and SAIL, considering getting out if MACD crosses down since the market is at a turning point to save some money.

Attached Images

ITC.JPG (60.5 KB, 32 views)

HI VVONTERU,got swing trading, by landry...thanks. coursey..forex trader

Ansal Properties
--Can you give me BSE code
Zee Tele
-- Looks very good. May pull back in the next couple of days. 265-270 is very close. If that is your profit target, CMP 260 is not far. Don't split hairs over couple of points.



Thanx vv for your comments.

Vvonteru,
What do you think of Colgate? It has been on a pullback for 3 days & starting to recover today. What should the entry, stoploss, and target be?
Regards
Kuldeep