August 16, 2010


      
  • Broadcom corporation is trading near its 200 DMA.
  • The stock has reversed from 200 DMA twice in the recent past. It is testing the 200 DMA again. If the trend line holds a reversal is possible in this stock
  • Stochastic indicator is in oversold zone. One should look for a close above 200 DMA to go long
  • Dow Jones Futures is finding support near 10225 levels.
  • Break of this level will bring it down to 10130 level. 10360 will act as resistance now.
UPDATED CHART 
  • Nifty is trying to reverse from an oversold positions.
  • Trading above 5415-5420 area will be positive for the bulls.

  • Nifty 5 minutes chart is showing a negative picture.
  • 5450 level is broken now. 
  • Nifty should get some support at 5408 level.
  • If 5408 does not hold we may test 5388
  • NIFTY WEEKEND UPDATE
WEEKLY LINE CHART
  • Nifty is trading above all the major moving averages.
  • Nifty has been trading in a range for the last 5 weeks.
  • So only a close above or below this range can give a good trade.
I am sharing some stock ideas with this weekend update
INDIABULLS REAL EST LTD
    • Tata steel is forming a channel in its daily line chart. The pattern can also be called as a bearish flag continuation pattern.
    • Watch how the stock behaves near 200 DMA and take a trading decision. See to which side the break out happens and go with it by keeping a small stop loss. 

    • TTML has given a breakout from Inverse head and shoulders. The stock has made a close above 200 DMA.
    • One can stay long above 200 DMA. With 200 DMA as stop loss.
    RAYMOND LTD
    • These 2 charts shows when a consolidation breakout combines with 200 DMA it becomes more powerful. The chances of false breakouts are less.
    • And Raymond makes the perfect breakout. From 240 levels to 370 levels in 5 days.
    BOMBAY DYEING
    • The rounding bottom pattern with 200 DMA.
    • Watch how the bottom is exactly at the 200 DMA and the stock pulls away from the moving average.

    Disclaimer

    All the contents of niftychartsandpatterns are for educational purposes only and are not Investment Advice or recommendations offered to any person(s) with respect to the purchase or sale of the stocks / futures. Niftychartsandpatterns shall not be held responsible for the actions of individuals, parties, or corporations taken in response to the ideas, thoughts, concepts or information presented in this blog. Hence all the visitors are requested to apply their prudence and consult their financial or investment adviser before acting on any of the Ideas in this blog.

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    My Favourite Quote

    "All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis."
    —Jesse Livermore