Sunday, November 2, 2014

Stocks with technical levels... plan your entries.


AUROPHARMA looks had enough rally. RSI shows -ve Divergence in weekly. Stock also making some reversal Candle stick patterns on weekly charts. So be cautious and look for postional retracements of 38.2% or 61.8% on stock towards 200 DEMA.


Bank of Baroda is making a sideways move. Forming a CUP and Handle formation inside a traiangle pattern. So be ready for a move above the trend line show in chart.Target could be above 1050 levels.


BF Utility looks turned bullish after long time. Below is weekly chart. Making a flag kind of formation. Fast raise set up is ready in the stock. The moment it moves above the trend line, stock is ready to run. 12 EMA, 34EMA, 50SMA on weekly chart are converged with fast raise set up. Stock can run much higher levels once it broke out of the range mentioned. Volumes also giving sign after long time. Buy with conviction.


BIOCON is not advised to short at these levels. But Stock looks having another round of down move till 61.8% retracement or trend line support. If stock comes to those levels then it is going to be good buy in the stock. However stock now trading below 200 SMA on daily charts. Conservative traders can wait and enter after moving back above 200 SMA on daily charts.

Weekly chart below shows that stock broken down the up trending channel which means stock may trade negative for some time. But stock looks taking support at 38.2% retracements now. So avoid shorts and wait for entry at 400 - 420 levels.


CAIRN INDIA hitting this time the low marked in box, it is going to be a wonderful buy. Dont know whether we get the buy again after this time at those levels or not. Dont miss to buy the stock at 240 - 260 levels with SL below 240. Conservative trader can enter the stock after breaking the trend line given above 385 levels.


CANBANK gave a wonderful breakout of the down trending channel. Stock took support at 61.8% of last raise in this correction and bounced back. Breakout is supported by volume. For now target is 435-440 indicated by arrow. If stay above 435, stock can move to further higher levels.


CENTRAL BANK is given a breakout of down trending channel after taking support at golden ratio of the previous raise and 200 SMA. Now stock is ready to head new highs.Buy in Every DIP with recent low 58 as SL.


COAL INDIA is took support at 50% retracement and started moving up giving a breakout above down trending channel.Buy in Dips with 200 SMA as SL for long term. Now stock changed to bullish after long time.

Weekly chart says stock is ready for flag breakout. Stock may fire non stop once flag range is broken.


CORPORATION BANK looks good for investment. Stock completed its second wave with support at 200 DMA. Stock also gave breakout from downward channel indicating correction is over. Buy the stock for targets of short term targets at 360 - 375 and long term targets above 420.


DHANALAKSHMI BANK showing some signs of bullishness after -ve trend of 3 years.It made a high of 60+ and then started a small correction. Now Stock looks trading in a downward channel and Stock took support at 200 SMA. Convergence of EMAS gives a good sign of thumping up move in coming days. Buy the stock with SL @ 40.


HMT Ltd looks good for investment for long term. Stock crossed earlier reflection point and made a high at around 60 levels.Keep an eye on this stock for long term investment. Volumes suggest something is going to happen in this stock. Closing above 40 on weekly basis may turn bullish towars the trend line shown in chart at 55 levels. Breakout of the trend line shown may turn the stock to multi bagger with targets of earlier highs at 106 & 164.


IOB is done with correction and now stock looks started moving up. Buy the stock for target at upper side of the channel at around 64-68. Stock may also test 72 - 78 levels.


JP ASSOCIATES Weekly historical chart says that the stock made double bottom with last 4 months period. We believe that we may not get this price in life time of JP associates again. Get on to the stock. We recommend a strong buy on the stock. Volumes also support  buying. Buy the stock with SL at 22/- as SL. Hold stock with conviction. This stock could be the best in coming three years to give returns.
People do SIP in mutual funds can also choose this stock for SIP in equity for long term. The moment stock gives breakout above this trend line we will see good momentum once again in the stock.


JUBILANT FOOD testing the patience of smart investors. Stock is trading in the range for almost three years, Stock once gives breakout, it will be a fire works till 1800- 1850 levels. 470 points channel breakout is ready on the stock. Closing above 1400 will give 1800 very fast. The way indicators are aligned and candle patterns are aligned, stock looks getting ready for such kind of breakout. Don't miss this.


PNB looks moving in sideways forming a good channel. Lets wait for breakout of the channel for a good move. If one wants to make good money,one have to wait for such a technical breakouts to take the trade and wait for targets. Breaking out of the channel, PNB may test the levels of 1100+

Either we buy at 820 - 800 levels if price visits lower end of the channel or take trade on breakout of the channel above 1000.


RELCAPITAL is one stock we suggest to keep buying on dips. Earlier in the same post, we mentioned two other stocks HMT & JP Associates for long term investment. We do have this one as well in pocket for long term investment and SIP.

Below weekly charts shows the clear consolidation period of the stock and Stock made a reversal pattern on RSI. We expect stock to move to much higher levels in coming days. Keep buying this stock in every dip.


SBIN looks ready to form a kind of channel. The Green trend line shows the stock breakout of the inverted HnS formation with target of earlier highs 2835 levels completing the channel.
If one who have holdings can book profits there and wait for correction till 2600 levels to make fresh entries with 2204 as SL for long term.


ULTRATECH CEMENT looks good for another round of up move.  Stock is moving in a channel. If we observe below weekly chart, it clearly shows 5 wave move 4th being given false breakdown of the channel and now ready for 5th wave upside.

There are two possibilities in this chart.

1 wave from lows of 1402 till 2009 ( almost 600 points)
2 wave from highs of 2009 till 1634 ( almost 375 points)
3 wave looks sub dividing now. Bcz chart is not satisfying any labeling for 1 to 5 waves of 3.

If we assume still 3rd is in progress then wave count will be as follows.
                3(i) will be from 1634 to 2280
                3(ii) will be from 2280 to 1950
                3 (iii) will be from 1950 to 2872
                3(iv) will be from 2872 to 2297 ( protected 3(i) high and did not enter this territory)
So lets wait for 3(v).

If we assume 3 is done at 2865 levels then move towards 2300 will be 4th and now ready for final 5th wave up.

In any case stock looks having some upside. so buy with conviction and trail SL.

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