New Intermed Uptrend!!
- Thread starter Saint
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Hi Saint!
Hope you are doing great.
I have a question in mind since long, hope I will be able to get the solution ver here.
I was just wondering how the analysts give price targets for stocks. If Some Chart patterns are formed like Flag or H&S, then I do understand how targets can be fixed. But can you please explain the methodology for giving price targets on studying the indicators. Is this based upon some kind of extrapolation?
Best Regards,
--Ashish
Hope you are doing great.
I have a question in mind since long, hope I will be able to get the solution ver here.
I was just wondering how the analysts give price targets for stocks. If Some Chart patterns are formed like Flag or H&S, then I do understand how targets can be fixed. But can you please explain the methodology for giving price targets on studying the indicators. Is this based upon some kind of extrapolation?
Best Regards,
--Ashish
Hi Ramesh,
Now for the 3rd part of your post.
FERRO ALLOYS :A positive divergence on any indicator is just that,not a signal to act ,but a signal for a possible rise in the near future.Which means nothing........let the stock give you a signal to get in,maybe a higher pivot low on the daily,etc.This one is still in a downtrend,meaning we do not go long until something changes.This is still making lower highs and lows.As we are traders and we are least bothered abt catching bottoms or tops,our intention here is to let this stock demonstrate some degree of strength before we commit funds to it.Basically,watchlist for now.If this can cross 12.38 which is the previous pivot high,then it becomes interesting,a sign of it starting a new uptrend.
TELEDATA :Same exact problem as above.We have bullish divergence on the TRIX n the RSI.But still a downtrend,no signal of an uptrend as yet.Therefore watchlist again.Maybe over 28 is a sign of possible change to the upside.An entry here would be one borne of hope and guesswork,so watchlist at best for this one for now.
ITL INDS :This one is worse than the previous 2,uglier by the day.Again,no signal for an entry,still very much in a dntrend.We may get some moves up and down,but not worth committing anything,funds,time or energy into this one for now.
IND SWIFT LABS:Again same as the first two.We have bullish divergences on TRIX,no signal for an entry,but an interesting one to keep a watch.Not yet an entry though for now.
IFCI :Till Feb 24th,this stk was indicating to us strength and an impending move up.That wide range bar on Feb 28th seems to have spoilt the party for now.The weekly looks uglier,we have a break down of trendlines in November last week,and this looks like a bear flag at best,which is indicative of possible lower prices.Whether it does or not is not our botheration,the question is:Is there an entry in this one on the long?No.Is there a clear trend reversal?No.Is there any reason to put my funds here and now leading to a series of days biting my nails off,sitting in the prayer room praying to the Lord Almighty?No.Are there better ones out there?Yes.
Remember,our job is to make profits.We don't care abt bottoms or tops,we pull the very important run-up between the two and laugh all the way to the bank.Follow the pullback as you are doing right now,but do NOT enter till you get a clear cut signal.
This post has gone too long,shall give an example of an entry on a p/b soon.
All the best!
Saint
Now for the 3rd part of your post.
FERRO ALLOYS :A positive divergence on any indicator is just that,not a signal to act ,but a signal for a possible rise in the near future.Which means nothing........let the stock give you a signal to get in,maybe a higher pivot low on the daily,etc.This one is still in a downtrend,meaning we do not go long until something changes.This is still making lower highs and lows.As we are traders and we are least bothered abt catching bottoms or tops,our intention here is to let this stock demonstrate some degree of strength before we commit funds to it.Basically,watchlist for now.If this can cross 12.38 which is the previous pivot high,then it becomes interesting,a sign of it starting a new uptrend.
TELEDATA :Same exact problem as above.We have bullish divergence on the TRIX n the RSI.But still a downtrend,no signal of an uptrend as yet.Therefore watchlist again.Maybe over 28 is a sign of possible change to the upside.An entry here would be one borne of hope and guesswork,so watchlist at best for this one for now.
ITL INDS :This one is worse than the previous 2,uglier by the day.Again,no signal for an entry,still very much in a dntrend.We may get some moves up and down,but not worth committing anything,funds,time or energy into this one for now.
IND SWIFT LABS:Again same as the first two.We have bullish divergences on TRIX,no signal for an entry,but an interesting one to keep a watch.Not yet an entry though for now.
IFCI :Till Feb 24th,this stk was indicating to us strength and an impending move up.That wide range bar on Feb 28th seems to have spoilt the party for now.The weekly looks uglier,we have a break down of trendlines in November last week,and this looks like a bear flag at best,which is indicative of possible lower prices.Whether it does or not is not our botheration,the question is:Is there an entry in this one on the long?No.Is there a clear trend reversal?No.Is there any reason to put my funds here and now leading to a series of days biting my nails off,sitting in the prayer room praying to the Lord Almighty?No.Are there better ones out there?Yes.
Remember,our job is to make profits.We don't care abt bottoms or tops,we pull the very important run-up between the two and laugh all the way to the bank.Follow the pullback as you are doing right now,but do NOT enter till you get a clear cut signal.
This post has gone too long,shall give an example of an entry on a p/b soon.
All the best!
Saint
Hi AJ,
IFCI :Had answered the query earlier 2 posts ago,so please refer.
First of all,no question is stupid.Every doubt is a stepping stone to success.
About L&T and the others, no real answer though,maybe someone could tell you some news related or some other fundamental answer.Maybe some technical correction.If you are into looking at charts following trends,the question "Why"does not exist.It is,or it is not.There is no why it is,or why it is not.Just "it is",or "isn't".We have our spiritual masters who advise us on moment to moment awareness,or living in the present or living in the now.........trend following is something like that.The rational mind is taught to shut itself up.We see a pattern,we get an entry,exit pts,we share size properly as per our money management disciplines,and then we trail stop,and through all this the mind is taught not to ask why,not to count the ruppes earned while the trade is still in progress,not to budge from our disciplines............basically not to think at all.All thinking and planning happens the night before,thinking stops while the market is on.Just entries,exits,share sizes,again and again for many trades.What happens is we end up trading without fear or greed,we stand aside from all the emotions that drive the markets.And while everyone around us is oscillating between fear and greed,we stand aside and quietly and confidently make our profits.
All the best!
Saint
IFCI :Had answered the query earlier 2 posts ago,so please refer.
First of all,no question is stupid.Every doubt is a stepping stone to success.
About L&T and the others, no real answer though,maybe someone could tell you some news related or some other fundamental answer.Maybe some technical correction.If you are into looking at charts following trends,the question "Why"does not exist.It is,or it is not.There is no why it is,or why it is not.Just "it is",or "isn't".We have our spiritual masters who advise us on moment to moment awareness,or living in the present or living in the now.........trend following is something like that.The rational mind is taught to shut itself up.We see a pattern,we get an entry,exit pts,we share size properly as per our money management disciplines,and then we trail stop,and through all this the mind is taught not to ask why,not to count the ruppes earned while the trade is still in progress,not to budge from our disciplines............basically not to think at all.All thinking and planning happens the night before,thinking stops while the market is on.Just entries,exits,share sizes,again and again for many trades.What happens is we end up trading without fear or greed,we stand aside from all the emotions that drive the markets.And while everyone around us is oscillating between fear and greed,we stand aside and quietly and confidently make our profits.
All the best!
Saint
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