I can help you with stock chart reading

Czar · #**771** 28th July 2006, 07:40 PM

Sir on the sensex an inverted H&S ??? right shoulder getting heavier volumes ??

vvonteru · #**772** 29th July 2006, 06:45 AM

Quote:

Originally Posted by Czar

Sir on the sensex an inverted H&S ??? right shoulder getting heavier volumes ??

Looks like that. In any case, it is just a setup so far. Entry condition is that, SENSEX goes above the neck line and pulls back to test the neck line successfully.

I would suggest you guys look at all the banks. Something sure is going on with all the banks with high volumes breaking out of the trading range.

http://www.ndtvprofit.com/bb/blank.a...1=BSE%20BANKEX

game4trade · #**773** 29th July 2006, 09:24 AM

Hi,

Your comments on ACC, GRASIM & AUROPHARMA please.

Thanks in advance.

kuldeep49 · #**774** 29th July 2006, 09:45 AM

Quote:

Originally Posted by Czar

Sir on the sensex an inverted H&S ??? right shoulder getting heavier volumes ??

Czar,
Is this what you mean ... I am a little confused ... where are the volumes?
Regards
Kuldeep

vvonteru · #**775** 29th July 2006, 06:35 PM

Quote:

Originally Posted by game4trade

Hi,

Your comments on ACC, GRASIM & AUROPHARMA please.

Thanks in advance.

ACC is looking good. Wait for pull back to enter after it crosses 850.

Same is the case of GRASIM. Wait for pull back to enter.

AUROPHARMA
-- I like that it crossed short term resistance 600 at high volume. Now it is in overbought condition. Wait for pull back to enter.

Based on the above, CEMENT stocks uptrend remains intact. So, we have 2 sectors that are in uptrend. I will check and add.

CEMENT
BANKS

vvonteru · #**776** 30th July 2006, 02:43 AM

Quote:

Originally Posted by vvonteru

ACC is looking good. Wait for pull back to enter after it crosses 850.

Same is the case of GRASIM. Wait for pull back to enter.

AUROPHARMA
-- I like that it crossed short term resistance 600 at high volume. Now it is in overbought condition. Wait for pull back to enter.

Based on the above, CEMENT stocks uptrend remains intact. So, we have 2 sectors that are in uptrend. I will check and add.

CEMENT
BANKS

One more sector breaking out.

Industry: Bulk Drugs and Formulations
Sector: Pharmaceuticals
CIPLA
ELDER PHARMA
IPCA LABORATORY
RANBAXY (Not yet. But, had 8 updays consecutively)
REDDY LABS
SUN PHARMA
AUROBINDO PHARMA

kenneth · #**777** 30th July 2006, 02:26 PM

Hi VV

Set Up 8 dma Crossing 50 dma : All the stocks except Ranbaxy have crossed this set up 12 to 14 days ago and started pull back with in 2-3 days for 6 to 7 days. Then they have started moving up again for 5 to 6 days and have gained around 8 to 12 % from their lows. Now we need to wait for pullback to take a position.

Was the set up favourable to take a position 4 days ago during the pullback or the sector analysis did not favour it. Or it went unnoticed.

We have few stocks outside the sectors mentioned which meet the set Up

Tata Power
Tata Tea
Zee Tele
Escorts
Appreciate your View.
Thanks

vvonteru · #**778** 30th July 2006, 06:19 PM

Quote:

Originally Posted by kenneth

Hi VV

Set Up 8 dma Crossing 50 dma : All the stocks except Ranbaxy have crossed this set up 12 to 14 days ago and started pull back with in 2-3 days for 6 to 7 days. Then they have started moving up again for 5 to 6 days and have gained around 8 to 12 % from their lows. Now we need to wait for pullback to take a position.

Was the set up favourable to take a position 4 days ago during the pullback or the sector analysis did not favour it. Or it went unnoticed.

We have few stocks outside the sectors mentioned which meet the set Up

Tata Power
Tata Tea
Zee Tele
Escorts
Appreciate your View.
Thanks

I think you use dma. I use EMA. For CIPLA, 8 day crossed 50 day 2 days back. If you are following dma, thats fine. You could enter the stocks if you get signal based on DMA as long you use it all the time, like I do EMA.

Looking at the action in indexes, I was not comfortable in recommending a buy. Indexes are still churning. A move above or below the trading range of the last month is desirable, unless the stocks can trade independently of the general market.

Tata Power
-- Coming out of the base. Leave this time and wait for next pull back.

Tata Tea
-- It just started to go up that makes me interested. Let it settle down (pull back) before you enter.

Zee Tele
-- If you look at the historical chart, the stock is very hard to trade. It gives very less chances to enter. Most of the time, it tests 50 day EMA. So, if you are interested, device a strategy that enters close to 50 day EMA and exits before it does another 50 day EMA test.

Escorts
-- wait for pull back.

kenneth · #**779** 30th July 2006, 08:43 PM

Thanks VV. I do use EMA but typed it as dma. Sorry for that.

Just like ZEE many stocks test 50 Day EMA. Strategy I am used to is to enter the stock only if the slope of 50 day EMA turns up. As long as the slope is down the chances are the price will come down from 50 day ema after hitting or just crossing 50 dema and can be made out by the candle formed on that day

Probably 8 ema crossing 50 ema ensures slope of 50 ema turning upwards or downwards. I have to start observing that. If you have observed that please let me know

Regards
ken

kuldeep49 · #**780** 30th July 2006, 10:10 PM

Hi Vv,
Taking the 8 & 50 EMA buying signal, would you recommend a buy on Dr. Reddy & Ultratech Cements? Or has the stock already gained enough? Have attached the charts. Also attached the Nifty chart ... good days ahead?
Regards
Kuldeep

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