April 13, 2010

ISPAT INDUSTRIES monthly chart trading inside a triangle

ISPAT INDUSTRIES MONTHLY
  • ISPAT INDUSTRIES has formed a triangle on the monthly chart.
  • volume is very low while the stock seems to come down steadily
  • take long position towards the bottom of the triangle keeping the triangle bottom as the stop loss. this will give you a good risk reward ratio
  • stock may at least rally till 35 looking at the size of the triangle.

4 comments:

  1. Dear Sir,
    Can you please share with us as to how do you filter these type of stocks. If you have any link please provide the same.

    Thanks & Regards

    Veer

    ReplyDelete
  2. At what rates one should take long position and what should be SL

    SL closing or intra day basis

    Also market can correct any time then what can be position of tis stock



    Sapna

    ReplyDelete
  3. Dear veer,
    I follow many forums and that gives me a list of stocks in which retail traders are interested in.

    Then i watch the charts. Since these stocks are traded very well, time and again they give you nice patterns.

    I don't have a specific link to filter these stocks.

    ReplyDelete
  4. @Sapna,

    The stock is trading near 20.50. And since this is a highly liquid stock if NSE corrects the stock may slide to 18.80 to 19.50

    this will be good opportunity to enter the stock. since we are entering very close to the bottom line of the triangle. We can have a very tight stop loss 18.40 to be exact, a daily close below this will be the stop loss

    To trade the range

    safe entry 18.80 stop loss 18.55
    target you can exit at the top of the triangle.

    To trade the break out

    Look for a break out and close above the triangle. For target the stock can go up to 35, for break out trade stop loss can be kept just below the day candle which break out.

    ReplyDelete