roneeth said:
Hi Amit,
How are you? Rallis made a very good move yesterday, thanks for the same.
Was going through the Aksh Optifibre charts.
Weekly chart: From December 2001 it is in a downtrend. looks like Rounding Bottom Reversal Pattern. Volume also looks like has taken the shape of a saucer.Volume too has picked up and closed yesterday at 81 with intraday high of 85. Bullish confirmation comes when the pattern breaks above the reaction high that marked the beginning of the decline at the start of the pattern which is 89 in 2001 december,. It tried taking out this resistance in December 2005 but failed to do so.
Bullish crossover of MACD above the signal line, Could we buy this if it can hold above 89?
When time permits could you please give your views
Thanks and Regards Roneeth
Hi Roneeth...I'm looking at the daily chart for Aksh as early as you.
Yes, the rounded bottom very roughly, culminating in a rather long ranging C&H: The right rim and handle is the action taking place now.
The daily chart shows this, a double top, and an interesting trendline too. One should follow that line carefully.
Like you've written, yes 85-89 is the area to watch closely, because over that a trend is likely to develop.
As for MACD, first thing first there is no real trend present in Aksh.
MACD is good once a trend gets going.
Yes, the price is ruling above 20-50-200 day moving averages and normally one would think that once price is above these, there is a trend present.
But the price has been depressed over a long period of time, and quite recently in February the price had tested 80 and then pulled back hard to touch base at 60. All this has skewed the moving averages.
To get a good assessment of whether there is a trend or not, you may first refer to ADX, as this indicator will truly depict a trading or trending price action. If from the ADX, price action is found not to be trending, you may want to look to RSI for trading signals rather than MACD.
At this point in Aksh, the price action is forming higher lows to give an impression of an ascending triangle with the top line at 81.
Once this line is taken out and sustained, it would be an early signal to begin preprations for a trade set-up in Aksh. We can look for confirmations then.
By the way, he upwards sloping trendline is the same in both the charts.
Great going Roneeth...and nice stuff happening at Greaves Cotton too!!
