Analysing Chart..a few words from me..its not a idea to go long or short, but a a steps to look at chart on a broad basis...enjoy..and comment of you dislike it...rightful criticism always serve for better improvement...The idea is i have read somewhere on some site stored following points to ponder upon, while looking at charts..just a weekend study...
Weekly chart
Daily Chart
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What stage is this stock in?
●Stock formed double bottom and bounced on long term support line, so as per chart a consolidation is going on between 13-23 range, and this range already witnessed a accumulation-run up-fall-accumulation-run up-fall
Is this stock in and uptrend or a downtrend?
stock is progressing from lower left corner of screen to upper right so its a uptrend on daily charts
Is the stock at the beginning, middle, or end of the trend?
As per weekly chart it seems downtrend in control, and stock is ready to surge up,after making double bottom on mid may, stock got a rally and a pullback now going on, and it seems it will correct whole rise from 12.5 to 23.5 level
How strong is the trend?
As compared to earlier rise from dec 2011 the current run is a less steeper and in orderly manner, so trend is going well,traders who knows ADX, may see the recent rise got ADX well above 45 mark, a indication of strong recent rise
Where are the trend lines?
The recent rise from mid may got restricted at long term upper trendline(see weekly chart) at 23.5 levels,so weekly still facing some price ressitance, but on daily a good basing pattern and a broken down from falling wedge(before mid may) give a good uptrend in progression
What wave is this stock in?
I am no elliott wave expert but, if you look from bottom of mid may, recent rise looks a 5 wave advance, and a recent pullback going on, so atleat one more advance left even if its in a correction
What do the moving averages tell me?
On daily chart a golden crossover of 50-200 already done and stock getting pullback towards,200 dma..so this is the action zone right now to lok for a trade setup
Was there a breakout recently?
No , so a retest of breakout ruled out
Is the chart "smooth" or "sloppy"?
chart is smooth with absence of choppy trends, so a good stock to trade in
Are there any chart patterns?
No after a recent rise from mid may where it break falling wedge right now no pattern, only pattern now going on is a pullback where, a triangle consolidation going on, also ADX falling(not shown here)
Are there wide range candles in the direction of the trend?
Yes, recent rise witnessed a wide range candle formations, where the rise from mid may, if you see carefully, rises are of wide range candles and falls are small consolidation candles or pin bar formation where the rise again took place or starts
Are there any gaps in the direction of the trend?
yes, in the recent rise a gap occured on 25th june, so the rise is a strong one...if one witneseed more gaps, probably it should be third wave, as the rise there is a strong one, and give fewer chances to initiate positions,leaving majority on off table
Are professionals selling strength or buying weakness?
Best way to judge this is look for engulfing patterns with volume and pin bar patterns with volume, both indicate a strong hands interference
Where are the support and resistance areas?
Resistance at 24.5 and support at 12.5 and a gap support at 15
Is this stock at a Fibonacci level?
yes, a recent rise from mid may, got correcting to near to 50% done, so a trade look out on opuurtunities here
What does volume tell me?
Rise witnesses good volume and fall is not getting huge volumes, so unwindings of longs not there, its a good sign for uptrend..low volume pullbacks are always favourable...if a stock is coming on low volume, it means stock lost traders interest and it is right time for institutions to garner chunk slowly
This is all...a preliminary analysis can be done without any indicator role..after this you can have your levels to initiate your position and also can look at your favourite indicators if it requires at all...
sorry, if someone dont find it useful, but thanks for your valuable time...
Happy weekend....
