Model charts showcasing patterns

sahil_ksa · #41 23rd December 2005, 12:54 PM

Quote:

Originally Posted by mohanlate

By the way, I am entering this counter tomorrow. All indicators are looking good to me. It is overbought, but definately not weak. It has gone up today on good volumes. I am going to ride the momentum. I suggest a BUY above 60 with a SL of 58.

Thanks for bringing this up.

Mohan

hi mohan,

jst have a small query. for last 8 trdng daz, M&M is trading between 520 & 500.. when i looked at the charts it was making a kindof descending triangle...am i ryte....is it going to break down.........

please comment

mohanlate · #42 23rd December 2005, 07:18 PM

Quote:

Originally Posted by sahil_ksa

hi mohan,

jst have a small query. for last 8 trdng daz, M&M is trading between 520 & 500.. when i looked at the charts it was making a kindof descending triangle...am i ryte....is it going to break down.........

please comment

Hi Sahil,

M&M went up from 485.7 (on 12 Dec) to 513.1 (on 14 Dec). That is, it went up almost 30 Rs in 2 long white candle days. On the day it closed at 513.1, it had gone up to touch a high of 524.5. A lot of selling pressure is begining to show at these levels, and the price is trying to settle down. In the last 8 trading days, it is retracing, trying to find a support to settle at. The support levels from this retracement are- 502.41(this was tested for 2 days), then it broke from here to test the next level of 499.5(this was the low for last 3 days). After this the next support level was 496. But today it did not touch this level and instead tried the earlier support of 499.5 again for the 6th time in last 8 days.

Hence 499.5 has become a very strong support. Buying will come at these levels. But to be on safer side, put stoploss on the next support level down. The next support down is at 496. If this is broken, then we may see a breakdown and a trend reversal.

Thanks,

Mohan

mohanlate · #43 23rd December 2005, 07:24 PM

Quote:

Originally Posted by sahil_ksa

hi mohan,

jst have a small query. for last 8 trdng daz, M&M is trading between 520 & 500.. when i looked at the charts it was making a kindof descending triangle...am i ryte....is it going to break down.........

please comment

Hi Sahil,

To answer your question - NO. I would not pass this one as a descending triangle. First, the time period is not large enough to contain a pattern. Secondly, for descending triangle to form, we must see lower highs being formed. In this case, the consistancy of lower highs is not so strong. Therefore I would hesistate to call it a Model chart for Descending triangle. Is it close to being one? Maybe. We will have to wait and see.

Hope that answers your Q.

Mohan

sahil_ksa · #44 23rd December 2005, 07:26 PM

Quote:

Originally Posted by mohanlate

Hi Sahil,

M&M went up from 485.7 (on 12 Dec) to 513.1 (on 14 Dec). That is, it went up almost 30 Rs in 2 long white candle days. On the day it closed at 513.1, it had gone up to touch a high of 524.5. A lot of selling pressure is begining to show at these levels, and the price is trying to settle down. In the last 8 trading days, it is retracing, trying to find a support to settle at. The support levels from this retracement are- 502.41(this was tested for 2 days), then it broke from here to test the next level of 499.5(this was the low for last 3 days). After this the next support level was 496. But today it did not touch this level and instead tried the earlier support of 499.5 again for the 6th time in last 8 days.

Hence 499.5 has become a very strong support. Buying will come at these levels. But to be on safer side, put stoploss on the next support level down. The next support down is at 496. If this is broken, then we may see a breakdown and a trend reversal.

Thanks,

Mohan

Thanks Mohan g.........Thank you very much indeed

p_haolader · #45 24th December 2005, 10:06 PM

Quote:

Originally Posted by mohanlate

Hi,

Karutu is in a down trend. It is a weak stock. It has a lot of resistance near 90. Avoid the stock for the time being. Look out for the 74.2 and 78 levels. The stock might bounce back from either of those levels.

Thanks,

Mohan

Hi Mohan,

Thanks a lot for replying. Glad to see there are still folks like you who work selflessly. All the best ..

Partha

shorttermer · #46 25th December 2005, 03:09 PM

Hi Mohan,

I really enjoy reading your thread and learn a good deal from it. Im not too good at chart reading, and wanted help on identifying a typical Head and shoulders pattern. do you see any scrip with such a pattern? I cant upload the chart but 'El Forge' looked sort of like a head and shoulder reversal. if you get the chance can you give me the answers to my queries?

thanks a lot,

shorttermer

cashgen · #47 26th December 2005, 11:36 AM

Quote:

Originally Posted by mohanlate

By the way, I am entering this counter tomorrow. All indicators are looking good to me. It is overbought, but definately not weak. It has gone up today on good volumes. I am going to ride the momentum. I suggest a BUY above 60 with a SL of 58.

Thanks for bringing this up.

Mohan

Hello Mohan,

I entered INDUSIND @ 61. Its quoting 56.6 right now. Do you suggest adding more stocks?

Thanks,
Anuj.

trader31339 · #48 27th December 2005, 12:15 PM

Attached is a chart showing a Rising Wedge.Please check whether it is a a Valid RISING WEDGE?

Thanks,

later

mohanlate · #49 1st January 2006, 09:23 PM

Quote:

Originally Posted by cashgen

Hello Mohan,

I entered INDUSIND @ 61. Its quoting 56.6 right now. Do you suggest adding more stocks?

Thanks,
Anuj.

Hi Anuj,

Extremely sorry for late reply.

First tell me, did you get stopped out at 58? I think you did not use stop loss when you entered at 61. Please use stop loss at these levels !!!

Yes, you should add at lower levels. I hope you did. Well, the breakout did not work as expected. But had there been another long black candle (Three black crows), we would be in a downtrend. At 58.35, I would say its a HOLD.

Thanks,

Mohan

mohanlate · #50 1st January 2006, 09:33 PM

Quote:

Originally Posted by shorttermer

Hi Mohan,

I really enjoy reading your thread and learn a good deal from it. Im not too good at chart reading, and wanted help on identifying a typical Head and shoulders pattern. do you see any scrip with such a pattern? I cant upload the chart but 'El Forge' looked sort of like a head and shoulder reversal. if you get the chance can you give me the answers to my queries?

thanks a lot,

shorttermer

Hi Shorttermer,

I dont remember seeing any script with a god h&s patterns recently. I will surely upload if i come across one.

I saw el forge charts. I am not sure which time frame are you refering too. Dont see any H&S in daily charts in the last 6 months.

It is necessary for the stock to be in an uptrend for a vaild H&S pattern to form. An H&S patterns is formed AT THE END of an up trend. H&S is a bearish reversal patterns.

El Forge was in an uptrend from april05 to Sept 05. Then it did a DOUBLE TOP reversal pattern. It was again in a breif up trend for 3 weeks in Nov.

Thanks,

Mohan

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