How to trade Cairn for week starting 06/06/2016

Bullish Possibility: 

Not much update in Cairn as the trade is yet to trigger. 

Cairn Daily Chart

Last week in Deb Trades we discussed that,

As can be seen from the above chart that all 5 bearish waves looks like completed in Cairn and this stock is going to start a new bullish cycle now. Though I expect wave 1 of this bullish cycle already done at 158.4 and we are now in the wave 2 correction and almost about to break the down trendline. Hence it is a sure buy above 150. As can be seen from the above chart first target is the Fibonacci 38.6% i.e 213, 2nd target Fibonacci 50% i.e 246 and 3rd target is Fibonacci 61.8% i.e 279.

Bearish Possibility: 

Same as last week,

Bearish below 150 hence if you enter a long at 150 manage the trade with Rs 1.5 filter i.e short below 150-1.5=148.5 and go long above 150.Bearish 1st target 133.7 and 2nd target 113.45 and 3rd target is 106.5

Summary: 

1) Cairn is bullish above 150 aggressive traders can enter there and manage the trade with Rs 1.5 filter.  

Final Words: 

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Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column.

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How to trade Cairn for week starting 30/05/2016

Bullish possibilities: 

So far have been trading in Banknifty, Nifty, Tatamotors and Maruti but looks like a new bullish cycle is about to popup in Cairn. Below is the daily chart of Cairn.

Cairn Daily Chart

As can be seen from the above chart that all 5 bearish waves looks like completed in Cairn and this stock is going to start a new bullish cycle now. Though I expect wave 1 of this bullish cycle already done at 158.4 and we are now in the wave 2 correction and almost about to break the down trendline. Hence it is a sure buy above 150. As can be seen from the above chart first target is the Fibonacci 38.6% i.e 213, 2nd target Fibonacci 50% i.e 246 and 3rd target is Fibonacci 61.8% i.e 279.

Bearish Possibilities: 

Bearish below 150 hence if you enter a long at 150 manage the trade with Rs 1.5 filter i.e short below 150-1.5=148.5 and go long above 150.Bearish 1st target 133.7 and 2nd target 113.45 and 3rd target is 106.5

Summary:

1) Cairn is bullish above 150 aggressive traders can enter there and manage the trade with Rs 1.5 filter. 

Final Words:

If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.

Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!

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How to trade Tatamotors for week starting 25/04/2016

In my earlier post I mentioned that Tata Motors has a resistance at around 416-431 Now where do we stand? As per Friday, 22/04 close we closed exactly in this region. That means 416-431 resistance zone will now defend tatamotors to move up and will try to move down or will put it into a consolidation. Here other trading strategy come handy.

In the above chart I have taken use of Elliot Waves count. You can learn about Elliot Wave in the handy tutorial that you receive once you subscribe to this site. As per this analysis we are almost done with the immediate up move and can start a down move at any moment although whipsaw at this level is quite natural. Now the question is how far this bull move can proceed in tatamotors in this current 5th wave. Frankly it is not possible to predict. This can reverse from 417 itself or move upto 431 and reverse there or even can move beyond 431 and finally fall below this level. Anyway we need to keep a close eye on it and have to use other trading techniques to handle it properly.

There are many trading techniques for this purpose. But do not try to mix them up this can be very dangerous for your account.
1) Try to identify triangles on lower time frame and when it breaks below it go short.
2) Use a moving avg, say 10 EMA and manage your position.
3) Use Divergences to identify the top.
4) Use indicators and oscillators etc.

If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.

Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!

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