rahulg77 said:
Hi Amit,
I know you do not answer a lot of questions now but had a query relating to Shanthi gear which i bought after reading your thread. What should the strategy be as according to me its broken the trendline. MACD signal is sell. But stop loss was around 68. Should we book partial profit or wait till the S/L is hit.
Hope to hear from u.
Rahul
Hi Rahul, I'm not sure where you entered.
For over two weeks Shanti Gears has been trading at meager volume, in a consolidating phase. I don't have average volumes with me, but I'd say it would be below 50,000.
Technically speaking, in this period it has not violated 80 on daily charts, and on weekly, the week's low is 78.50. I'd give it another Rupee or so and bring the stop down to around 77.
Yes, a few indicators are showing weakness, but then that's just the way it is in a pullback from recent highs. It does not mean there is inherent weakness in the chart. Track SMAs and EMAs, and you'll find the trend is still to the up, as it's above short term SMA and EMAs. As far as moving averages indicate the status of the trend, it's still in the up area, even if the wider market has been volatile and unsure.
Look at the candlestick daily and weekly charts and you'll see the last bars as 'Hammers' signifying the underlying strength.
When one looks at various indicators, one should also look at other parameters to assess the chart and figure the recent upmove, pullback, consolidation, volume, moving averages etc.
For me Shanti Gears is in a consolidation phase, and is being accumulated quietly on low volume. A fresh breakout is quite likely in the near term. The stop level is mandatory too.
Do track and run it by again when you like. Happy to follow up my calls.
All the best.
