breakout

karthikmarar

Well-Known Member
Breakout Watch

Vysya Bank

This was moving sideways between 140 to 150 from April after a steep drop from 210. It jumped to 171 in three session with increasing volumes. Puling back in the last two session with decreasing volume. Wait for the resolution phase..when the stock starts moving up again on increasing volume. Stiff resistance exists at 175.

NIIT.

On the pullback nowBelow the support level of 325.wait and watch..

HMT

On the Pullback (Reaction Phase). Still Above the support level of 95. wait for the resolution phase..

Crompton Greaves

Fell back to 116 .Today recovered to 625. Volume support is lacking.. TRIX has turned around downwards. MACD just crossed below the single line. 3 day MA crossed below the 13 day MA. This may move sideways in the short term. In my opinion the stock has to takeout 650 with good volume

MRO-Tek

Continuing to move up with increasing volume. A pull back would offer good entry opportunity.

IGL

Looks like a classical breakout. Pulled back to 123 on decreased volume. Has entered resolution phase, Today jumped to 129 with increased volume. Time to enter I suppose.

This is just to throw more light on the current breakouts..not BUY recommendations :)

regards

karthik
 
hi karthik, cmlee et al
nice 2 see one thread where there is not much clatter. actually lot many varied posts make it difficult to locate what one really needs.
and guys u have a gr8 thread going with serious knowledge about breakout.
:) :D
regards
ragh_ash
 

karthikmarar

Well-Known Member
cmlee said:
Hi Karthik,
there is a breakout on 21 Sept in this chart.
can i know where is the resolution phase ?
lee,

The breakout started on the 12th the share price started to move up with increased volume. The stock rose upto .34 then started the pulback and came down to .31. Normally the pull back is on reduced volume. Stranhgely here the voulme shot up during the pull back. Then again the stock started rising on the 3rd. Again the intial rise was without much volume. after two session the volume also came in. This is resolution phase of the breakout. In very simple terms the price shoots up on high volumes (Action Phase)..Then there is pullback normally on low volumes (Reaction phase) and the the price rises agin accompanied by good volumes (Resolution phase). Don't look at the prices alone... look at the volume pattern also.

Lee, Hope this is clear.

karthik
 

karthikmarar

Well-Known Member
cmlee said:
Karthik,
Assuming i bought at resolution phase. How do I know when I should take profit?
Ahhh...Lee... now we are entering a vast subject..... :D

Simplest way may be a trailing stop loss. In this particular case when you enter the trade the stoploss should be the point of breakout.. as the price rises keep raising your stoploss. Ride the trend as much possible. Finally when the trend turns down your stoploss will be taken out. Another way will be fix a profit margin and exit when you acheive it. But you lose the chance of getting more out of the trend... There are many ways...

Please go the following thread by Traderji on exiting a trade..

http://www.traderji.com/showthread.php?t=3310&highlight=exiting

karthik
 

AMITBE

Well-Known Member
karthikmarar said:
Ahhh...Lee... now we are entering a vast subject..... :D

Simplest way may be a trailing stop loss. In this particular case when you enter the trade the stoploss should be the point of breakout.. as the price rises keep raising your stoploss. Ride the trend as much possible. Finally when the trend turns down your stoploss will be taken out. Another way will be fix a profit margin and exit when you acheive it. But you lose the chance of getting more out of the trend... There are many ways...

Please go the following thread by Traderji on exiting a trade..

http://www.traderji.com/showthread.php?t=3310&highlight=exiting

karthik
Hi Lee and Karthik...here is another view I had posted a while ago at my thread on trailing stops. May be useful too as it would come under exiting a profitable trade.
Thanks.
http://www.traderji.com/showpost.php?p=20507&postcount=1374
 

karthikmarar

Well-Known Member
ragh_ash said:
hi karthik, cmlee et al
nice 2 see one thread where there is not much clatter. actually lot many varied posts make it difficult to locate what one really needs.
and guys u have a gr8 thread going with serious knowledge about breakout.
:) :D
regards
ragh_ash
Ya..ragh_ash this is a nice thread.. with great contributions from Amit and Saint..

Thanks

karthik
 
Always great to read these again........very nice and great stuff,Amit/Karthik!!

Saint
 

Similar threads