correction

Grid View

List View

Showing posts with label correction. Show all posts

Saturday, 4 June 2016

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:

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

Bullish Possibility:

In our earlier post on Tatamotors we mentioned:

Till tatamotors is below 416-431 and above 360-368 it is purely in consolidation zone for positional traders.

Now let's see where we are:


Tatamotors Daily Chart

As can be seen from the above daily chart of Tatamotors we moved out of red falling trend channel but still within the green falling trend channel and for the last 1 month or so this stock has been moving in a small range of 404-376. This consolidation range is marked in grey in the chart. Hence until we are above this consolidation range no major bullish move possible. So aggressive traders can go long above 404 with a filter of 2 points as SAR.

Bearish Possibility:

Bearish corrections possible till we are floating below 404. Hence hold any short positions with 404 as SAR with 2 points filter value.

Summary:

1) Tatamotors SAR is at 404 hence go long in tatamotors above 404 with 2 points 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!!

Bullish Possibility:

In our earlier post on Maruti, we mentioned:

For the last couple of weeks Maruti has put on couple of doji signals on weekly chart. Doji signals indicated indecisiveness between bulls and bears and also some times indicate formation of tops. But the good thing is that Maruti still floating above 3800. So till this is trading above 3800 bulls are safe and look for first target at 4177 and next 4340 approx.

Now let's analyze where we are in this counter. Last week Maruti opened at 3964, made low at 3893, high at 4162 and closed at 4146.6. So we are almost near our first target of 4177.

Maruti Daily Chart

As can be seen from the above daily chart of Maruti we are almost near to the top of the rising trend channel line and 61.8% Fibonacci retracement of the last fall. Hence resistance is expected at this area and some minor correction can be started but we should be resuming the trend as long we are within the rising trend channel. The next target is at 4340 approx which is the target of the Inverse Head and Shoulder as marked on the chart.

Bearish Possibility:

As a trader we should always be ready with our stops and reversal levels. Hence traders should hold on to their long positions with stops moving to entry point i.e 3800 level and should use this as SAR for short entry.

Summary:

1) Maruti has resumed it's primary long term trend which is long.

2) Traders should hold on long with SAR at entry point i.e 3800 as this is a medium term trade hence no aggressiveness.

Final Words:

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:

How to trade Nifty for week starting 16/05/2016

15/05/2016 02:11 PM IST

Last week in Debtrades we discussed,

Quote:
Risk takers can take a long trade if Nifty move past the red resistance line next week. Currently the resistance is at 7713 but would suggest to go long above the break of the previous pivot at 7773. If long taken the position should be maintained with 20 points SAR.
Unquote:

Last week Nifty opened at 7755, made a low at 7754 and almost immediately moved to 7773. The week high was at 7916 and closed at 7814.9.
Now let's analyze Nifty for this week. We will start with Bullish Possibility.

Bullish Possibility:


Nifty Weekly Chart

As can be seen from the above chart Nifty is still in the consolidation zone (the grey rectangle) but last week Nifty has painted a bullish candle on the chart though has closed just at the blue resistance line. So for this week if Nifty trades above the falling channel (blue) it will be bullish and can target the upper edge of the consolidation zone which is at 7972 approximately. A successful breakout above 7808 will result in targets like 8323 and 8650 respectively.

Bearish Possibility:

Nifty Daily Chart

If Nifty fails to float above 7808 then could potentially target the lower edge of the consolidation rectangle which is at 7574. Also as can be seen from the above Daily chart of Nifty, it is currently in a corrective channel (red). If Nifty fails to move past the last week high of 7916 in coming sessions could potentially target the lower edge of the falling channel which is 7620 currently and this will move much lower as the time passes by.

Summary:
1) Till Nifty is below 7972 it is in consolidation phase.
2) No long should exist below 7808. Hence use 7808 as the SAR for your position with a filter value of 20 points.

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!!

How to trade Tatamotors for week starting 09/05/2016

Bullish Possibilities:
Last week we mentioned that,

Quote
As always we start with Bullish Possibilities. though in ST I do not see any bullish possibilities. As mentioned in my earlier post on tatamotors, Tata Motors has a resistance at around 416-431 so until unless it move past this resistance zone no bullish possibilities exist.
....
So next week is trend deciding week for tatamotors. If this open lower and trade lower then quite possible that this will visit 393-400 in short term
Unquote:

So tatamotors obliged we short traders by providing some quick money and visited till 380.1 odd levels but bounced back nicely on last two days to close at 398.7. The bounce is quite obvious as we mentioned in my last post (summary) that it is in purely consolidation zone currently hence such a bounce is quite natural. Now let's analyze what this stock has in it's store for this week.

Tatamotors tata motors stock chart Hourly

Tatamotors Hourly chart

As can be seen from the hourly chart tatamotors has broken down the rising trend channel and has found support at 380 which was earlier resistance zone. After the straight fall from 421 to 380 this has bounced almost 50% of Fibonacci retracement and currently dealing with 400 level by closing at 398.7 odd levels. 400 was earlier support and hence expected to be a resistance now for this stock. If able to move past 400 could find 416 as the next resistance level. Breakout above 416 will trigger the ultimate target at around 600 because of the W pattern mentioned in my previous post.

Bearish Possibilities:

Tatamotors Weekly Chart

As can be seen from the above Tatamotors Weekly Chart, last week candle has fallen below the rising trend channel which is bearish and can target 368-360 in medium term. Though in short term this can be extremely turbulent because of consolidation as discussed earlier.

Summary:
1) Till tatamotors is below 416-431 and above 360-368 it is purely in consolidation zone for positional traders.
2) Below 360-368 it is only sell.
3) Above 416-431 it is only buy.
4) In consolidation buy the dips and sell the tops.

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 master says, Get Rich Slowly and Quietly. Cheers!!