Charts for the Day

[anil_s_trivedi]

Dear sreeram,

I am a lover of trend following systems, be it trading with movnig averages or following a trending indicator...The key is first understand different patterns on different timeframes.

The point is, how smaller timeframe position changes and if trend is strongly asserting, it will have its impact on higher timeframe too. Once Higher timeframe getting weakness as per purely price action and then with assisted indicators, then look for weak point on lower timeframe, and always have good risk reward setup. I dont have any ration for that, but what you want to risk for what you want to get...

The chart explains how before falling it failed to clear 335 zone, and when moving average setup along with assisted indicators telling, price is weakening, and then the moving average setup telling us, failed action at 330 zone...thats the point to go short if any, or aggressive trader can go at top too, once price failed at 335 zone..it all depends on risk appetite...

 

[mksreeram]

Dear sreeram,

I am a lover of trend following systems, be it trading with movnig averages or following a trending indicator...The key is first understand different patterns on different timeframes.

The point is, how smaller timeframe position changes and if trend is strongly asserting, it will have its impact on higher timeframe too. Once Higher timeframe getting weakness as per purely price action and then with assisted indicators, then look for weak point on lower timeframe, and always have good risk reward setup. I dont have any ration for that, but what you want to risk for what you want to get...

The chart explains how before falling it failed to clear 335 zone, and when moving average setup along with assisted indicators telling, price is weakening, and then the moving average setup telling us, failed action at 330 zone...thats the point to go short if any, or aggressive trader can go at top too, once price failed at 335 zone..it all depends on risk appetite...

Dear Anil,

Thanks for the details. Can you please let me know how do you avoid the lag in trend following indicators?

Also pls let me know your view on Suzlon. Below is my options. Let me know your suggestion. (Below is the chart)

1. To short - All short term indicators loosing momentum. Short at Rs 18 level for about 5-8% downside. Con: 5-8% down on 18 would be almost at the rock bottom level near 52 WK low. Still in my view looks like a good candidate for shorting.
2. Wait for the retracement to finish and go long once steam goes out on shorts.

Thanks in advance.

 

[manickamtup]

I can't clear above chart. I am new trader

 

[mksreeram]

I can't clear above chart. I am new trader

I don't understand what you are asking. can you please be clear.

 

[anil_s_trivedi]

Dear Anil,

Thanks for the details. Can you please let me know how do you avoid the lag in trend following indicators?

Also pls let me know your view on Suzlon. Below is my options. Let me know your suggestion. (Below is the chart)

1. To short - All short term indicators loosing momentum. Short at Rs 18 level for about 5-8% downside. Con: 5-8% down on 18 would be almost at the rock bottom level near 52 WK low. Still in my view looks like a good candidate for shorting.
2. Wait for the retracement to finish and go long once steam goes out on shorts.

Thanks in advance.

Dear sreeram,

I am not in favour of shorts here..why..??
It already breached multimonth range on upside with good volumes.So ideal thing will be to have fibo retracements in hand of recent run up on daily and enter on closer to 61.8% or like that...
Stock on weekly showing good positive divergence on +DMI and also ADX fall on previous two declines, implies fall loosing strength.
On daily too rise in ADX is good after many months, so as per me stock only following market sentiments wit nifty, and will be apt candidature for longs at good risk-reward levels.
Technical is not always 100% perfect, but yes you can have your roadmap and possible entry-exit levels in hand, and yes stoploss too.

It may hover around here, closer to 17 before moving up.

 

[mksreeram]

Dear Anil,

Thanks for the details. Can you please let me know how do you avoid the lag in trend following indicators?

Also pls let me know your view on Suzlon. Below is my options. Let me know your suggestion. (Below is the chart)

1. To short - All short term indicators loosing momentum. Short at Rs 18 level for about 5-8% downside. Con: 5-8% down on 18 would be almost at the rock bottom level near 52 WK low. Still in my view looks like a good candidate for shorting.
2. Wait for the retracement to finish and go long once steam goes out on shorts.

Thanks in advance.

Dear sreeram,

I am not in favour of shorts here..why..??
It already breached multimonth range on upside with good volumes.So ideal thing will be to have fibo retracements in hand of recent run up on daily and enter on closer to 61.8% or like that...
Stock on weekly showing good positive divergence on +DMI and also ADX fall on previous two declines, implies fall loosing strength.
On daily too rise in ADX is good after many months, so as per me stock only following market sentiments wit nifty, and will be apt candidature for longs at good risk-reward levels.
Technical is not always 100% perfect, but yes you can have your roadmap and possible entry-exit levels in hand, and yes stoploss too.

It may hover around here, closer to 17 before moving up.

Thanks for your advice. suzlon is in ban period, not sure why and can't enter in futures.

 

[anil_s_trivedi]

Thanks for your advice. suzlon is in ban period, not sure why and can't enter in futures.

Generally security goes in ban period, when open interest in it reaches 95% of free float stock in that stock.

Its alarming, and new positions cannot be made, only existing traders can unwind their positions.

 

[Esse]

Hi Anil,
Would you pl post your views on Hexaware technologies, IDBI and Tech Mahindra. Thanks in advance
Regards

 

[timepass]

EUR/USD daily : Does it look like a cup and handle forming ??

 

[anil_s_trivedi]

Dear Esse,

Sorry friend for delayed reply, was busy in some personal work. As you are holding futures long, i dont see any reason to initiate longs closer to 200 DMA,what you initiated at 114 or so. As from weekly charts stock got correcting from a huge divergence in RSI, so a higher timeframe weakness already hammered it upto 108 levels.
Now from what i see from daily charts, a likely bounce till 116-118 can be there, so a good thing will be exit at those levels.
A supporting fact is, in weekly chart a last week candle is a good reversal one, so lets see for this week closing should be above 112. If monthly closing above 111.5 a likely revisit to 120 levels.

Dear esse,

As i replied back in october end, that stock got correcting huge run up, and intermediate down may test sub 98 levels. Also a likely exit warning near to 116-118 also shown, stock touched 116.6 and started correcting from there.

The point is stock now getting overstretched in fall, and a likely bounce towards 92-95 pending, it may be before touching 78-80 zone or afterwards.
In short for good longs one should wait for 78-80 levels.

Stock had good long term support near to 58-60 zone. and it should hold for continuing its bulls run. Lets see, right now dont jump into.