MRF? Any thoughts?

[wannabeguru]

Hey ppl,

First of all a quick into on me. I am currently an MBA student and have been managing a virtual portfolio for the past 2-3 months. And like my screen name suggests i am a wannabe guru. You ppl are extremely experienced. Would be glad if you could help me out every now and then.

Anyways, now onto the title of the thread...Have noticed that MRF has severly dropped from around 3110 levels to currenty somewhere above 2900. Me thinks it might get corrected further. Whats the opinion on this? Is it a good buy? Or should one wait further...

Am also checking out fundamentals currently...so will post back with that too...But till then if anybody has any opinions..please give them! .... Thanks!

Wannabeguru

 

[Traderji]

MRF had formed a shooting star the previous week (see attached chart). The shooting star is a bearish reversal Japanese candlestick pattern that forms after an advance and in the star position, hence its name.

A shooting star can mark a potential trend reversal or resistance level. The candlestick forms when prices gap higher on the open, advance during the session and close well off their highs. The resulting candlestick has a long upper shadow and small black or white body. After a large advance (the upper shadow), the ability of the bears to force prices down raises the yellow flag.

To indicate a substantial reversal, the upper shadow should relatively long and at least 2 times the length of the body. Bearish confirmation is required after the shooting star and can take the form of a gap down or long black candlestick on heavy volume.

 

[Saint]

Thanx for the education as always Traderji.