Charts for the Day
- Thread starter anil_s_trivedi
- Start date
- Tags 50 dma investing chart reading moving average setups ta charts
Analysing Chart..a few words from me..its not a idea to go long or short, but a a steps to look at chart on a broad basis...enjoy..and comment of you dislike it...rightful criticism always serve for better improvement...The idea is i have read somewhere on some site stored following points to ponder upon, while looking at charts..just a weekend study...
Weekly chart
Daily Chart
]
What stage is this stock in?
●Stock formed double bottom and bounced on long term support line, so as per chart a consolidation is going on between 13-23 range, and this range already witnessed a accumulation-run up-fall-accumulation-run up-fall
Is this stock in and uptrend or a downtrend?
stock is progressing from lower left corner of screen to upper right so its a uptrend on daily charts
Is the stock at the beginning, middle, or end of the trend?
As per weekly chart it seems downtrend in control, and stock is ready to surge up,after making double bottom on mid may, stock got a rally and a pullback now going on, and it seems it will correct whole rise from 12.5 to 23.5 level(it corrected 50%)
How strong is the trend?
As compared to earlier rise from dec 2011 the current run is a less steeper and in orderly manner, so trend is going well,traders who knows ADX, may see the recent rise got ADX well above 45 mark, a indication of strong recent rise
Where are the trend lines?
The recent rise from mid may got restricted at long term upper trendline(see weekly chart) at 23.5 levels,so weekly still facing some price ressitance, but on daily a good basing pattern and a broken down from falling wedge(before mid may) give a good uptrend in progression
What wave is this stock in?
I am no elliott wave expert but, if you look from bottom of mid may, recent rise looks a 5 wave advance, and a recent pullback going on, so atleast one more advance left even if its in a correction
What do the moving averages tell me?
On daily chart a golden crossover of 50-200 already done and stock getting pullback towards,200 dma..so this is the action zone right now to lok for a trade setup
Was there a breakout recently?
No , so a retest of breakout ruled out
Is the chart "smooth" or "sloppy"?
chart is smooth with absence of choppy trends, so a good stock to trade in
Are there any chart patterns?
No after a recent rise from mid may where it break falling wedge right now no pattern, only pattern now going on is a pullback where, a triangle consolidation going on, also ADX falling(not shown here)
Are there wide range candles in the direction of the trend?
Yes, recent rise witnessed a wide range candle formations, where the rise from mid may, if you see carefully, rises are of wide range candles and falls are small consolidation candles or pin bar formation where the rise again took place or starts
Are there any gaps in the direction of the trend?
yes, in the recent rise a gap occured on 25th june, so the rise is a strong one...if one witneseed more gaps, probably it should be third wave, as the rise there is a strong one, and give fewer chances to initiate positions,leaving majority on off table
Are professionals selling strength or buying weakness?
Best way to judge this is look for engulfing patterns with volume and pin bar patterns with volume, both indicate a strong hands interference
Where are the support and resistance areas?
Resistance at 24.5 and support at 12.5 and a gap support at 15
Is this stock at a Fibonacci level?
yes, a recent rise from mid may, got correcting to near to 50% done, so a trade look out on opuurtunities here
What does volume tell me?
Rise witnesses good volume and fall is not getting huge volumes, so unwindings of longs not there, its a good sign for uptrend..low volume pullbacks are always favourable...if a stock is coming on low volume, it means stock lost traders interest and it is right time for institutions to garner chunk slowly
This is all...a preliminary analysis can be done without any indicator role..after this you can have your levels to initiate your position and also can look at your favourite indicators if it requires at all...
sorry, if someone dont find it useful, but thanks for your valuable time...
Happy weekend....
Weekly chart
Daily Chart
What stage is this stock in?
●Stock formed double bottom and bounced on long term support line, so as per chart a consolidation is going on between 13-23 range, and this range already witnessed a accumulation-run up-fall-accumulation-run up-fall
Is this stock in and uptrend or a downtrend?
stock is progressing from lower left corner of screen to upper right so its a uptrend on daily charts
Is the stock at the beginning, middle, or end of the trend?
As per weekly chart it seems downtrend in control, and stock is ready to surge up,after making double bottom on mid may, stock got a rally and a pullback now going on, and it seems it will correct whole rise from 12.5 to 23.5 level(it corrected 50%)
How strong is the trend?
As compared to earlier rise from dec 2011 the current run is a less steeper and in orderly manner, so trend is going well,traders who knows ADX, may see the recent rise got ADX well above 45 mark, a indication of strong recent rise
Where are the trend lines?
The recent rise from mid may got restricted at long term upper trendline(see weekly chart) at 23.5 levels,so weekly still facing some price ressitance, but on daily a good basing pattern and a broken down from falling wedge(before mid may) give a good uptrend in progression
What wave is this stock in?
I am no elliott wave expert but, if you look from bottom of mid may, recent rise looks a 5 wave advance, and a recent pullback going on, so atleast one more advance left even if its in a correction
What do the moving averages tell me?
On daily chart a golden crossover of 50-200 already done and stock getting pullback towards,200 dma..so this is the action zone right now to lok for a trade setup
Was there a breakout recently?
No , so a retest of breakout ruled out
Is the chart "smooth" or "sloppy"?
chart is smooth with absence of choppy trends, so a good stock to trade in
Are there any chart patterns?
No after a recent rise from mid may where it break falling wedge right now no pattern, only pattern now going on is a pullback where, a triangle consolidation going on, also ADX falling(not shown here)
Are there wide range candles in the direction of the trend?
Yes, recent rise witnessed a wide range candle formations, where the rise from mid may, if you see carefully, rises are of wide range candles and falls are small consolidation candles or pin bar formation where the rise again took place or starts
Are there any gaps in the direction of the trend?
yes, in the recent rise a gap occured on 25th june, so the rise is a strong one...if one witneseed more gaps, probably it should be third wave, as the rise there is a strong one, and give fewer chances to initiate positions,leaving majority on off table
Are professionals selling strength or buying weakness?
Best way to judge this is look for engulfing patterns with volume and pin bar patterns with volume, both indicate a strong hands interference
Where are the support and resistance areas?
Resistance at 24.5 and support at 12.5 and a gap support at 15
Is this stock at a Fibonacci level?
yes, a recent rise from mid may, got correcting to near to 50% done, so a trade look out on opuurtunities here
What does volume tell me?
Rise witnesses good volume and fall is not getting huge volumes, so unwindings of longs not there, its a good sign for uptrend..low volume pullbacks are always favourable...if a stock is coming on low volume, it means stock lost traders interest and it is right time for institutions to garner chunk slowly
This is all...a preliminary analysis can be done without any indicator role..after this you can have your levels to initiate your position and also can look at your favourite indicators if it requires at all...
sorry, if someone dont find it useful, but thanks for your valuable time...
Happy weekend....
Hi friends,
Down the line we had discussed this chart, for a lesson to analyse chart, just out of curiosity i checked the same chart, this week, and happy that our analysis was in line with the results we got..hope to post some more of the same type...Good luck...
Anil ji.. Need ur opinion on Axis Bank.. I am holding few shares in cash at 950... Getting a rush to sell...
Image shack is down, so not possible to upload the chart, anyways...when you initiated longs what is your first TGT, i am just asking this bcoz what is your whole plan...
As far as Axisbank is concerned stock still in uptrend, and any closing above 1140 will spark a rally till 1250/1450 levels..right now a consolidation going on, and it need to hold 1063 on closing basis, in this correction...
On momentum side, i am seeing one more time to clear its recent highs, then if strength not shown a fall coming to test sub 900 levels, else 1500 in sight...So short term momentum is down, intermediate still UP...
Dear Tharu,
As stated planned entry & exits are best, you dont need to worry what to so now and then...And the most difficult thing for Retail investor/trader is he ride losses with great comfort/discomfort but dont have guts to sit on winning position..or staying calm...even a marginal profit make him more worry that he should not loose it...one has to improve on it...i suggest partial profit booking and riding the wave, until the same setup which gave you buy triggers sell..i mean the rationale behind entry should be the same when to exit...or as i already replied to mangup i think so, that first sign of weakening is when daily closes below 5ema high..to sign of fatigue to move higher...
or you can have hourly divergences to exit...or simple abc fibonacci projection..more the confluence zone more the chances of resisting, its a serious business, and you need to remain alert what prices are doing,ultimately price action precedes all...
As stated planned entry & exits are best, you dont need to worry what to so now and then...And the most difficult thing for Retail investor/trader is he ride losses with great comfort/discomfort but dont have guts to sit on winning position..or staying calm...even a marginal profit make him more worry that he should not loose it...one has to improve on it...i suggest partial profit booking and riding the wave, until the same setup which gave you buy triggers sell..i mean the rationale behind entry should be the same when to exit...or as i already replied to mangup i think so, that first sign of weakening is when daily closes below 5ema high..to sign of fatigue to move higher...
or you can have hourly divergences to exit...or simple abc fibonacci projection..more the confluence zone more the chances of resisting, its a serious business, and you need to remain alert what prices are doing,ultimately price action precedes all...
HDFC bank is testing a resisting trendline running from past 4-5 years
Stock in a secular uptrend, but the recent move of 4 years appearing to be a rising wedge formation, and resisting zone proving to be a decider level ahead
On daily too, the recent run up from december lows, it is forming a rising wedge formation, and it just overshoot from it(pink dotted line), so ideally a move below 610 can be a indication of top already in and stock setting for a correction mode
As expected in our last analysis dated:27th september, stock will face resistance of upper trendline in the region 640.
Now in our fresh followup, RSC too showing some lost of strength, and stock is not moving with index. It seems some cool down needed.
Rest more weakness below 610 as from earlier analysis, no change in that.
Will update possible downsides,if stock starts reacting.
HDIL tested falling trendline, and falling, with a down bar this week. So ideally its not a good sign. Reason i posted is, now if got a breakout it will be a good valid sign, as week before was a down bar.
On weekly chart, 50 SMA after turning flat now it is rising. so a good sign of consolidation already down,stock poised for higher levels.
Second chart, is RSC with NIFTY, here RSC shown first sign of strength, by moving above its 200 SMA,after a long time. So is it a sign of strength. Now the character of correction will be a good to decide. If its a shallow correction, expect the brekout on upside.
Looking good for intermediate term, so buying in correction is good.We will watch RSC closely in coming week, to decide.
Chart Details:
- Blue bars and red bars are highlighted with bars above and below middle BB
- Pink is weekly pivot, Green is monthly pivot
- Orange is 50 SMA daily, and brown is 200 SMA daily
As seen JP asso, in uptrend making higher lows and highs, so with negative divergence in sight we will look for possible entry on retracement
MACD showing negative div, a fall in momentum, but rising MA's still giving an indication of more uptrend to come,remember it requires a lot more to reverse a trend
RSI upper BB, falling indicating it is getting capped on upside, and a possible touch to lower BB in waiting
Reason for using this template is, it gives me good momentum stocks, with weekly and monthly pivots, it is showing underlying strength of stock, to hold the key levels
See how earlier it struggle to maintain to hold monthly pivot level
Pivots are nothing but a value area, goes on changing with time, as weekly and monthly levels
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