July 2, 2010

ABAN OFFSHORE at the fifty day moving average

  • ABAN has been moving up in daily chart having broken out of an inverted head and shoulders pattern in daily chart.
  • Now after moving up nearly 50 points from the neckline it is testing the 50 DMA.
  • Those who are holding long can confirm the strength of the up move if it makes a strong close above the 50 DMA this week

7 comments:

  1. Hi San.

    Good Morning. Thank You for Posting Aban as requested. Appreciate it. It validates & reinforces my understanding on the Stock.

    Question here: You say that the Stock has broken from the IHS Pattern is it because the Neckline / Shoulder is not exactly equal? My understanding was that despite these imperfections the Pattern still remains IHS; unless the Stock now starts moving sideways or break's down. Please throw some light if time permits.

    Thank You once again.

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  2. @Mayur
    the head and shoulders patterns comes in all shapes and sizes. I have seen descriptions of H&S pattern in many books which looks complex.

    So this one need not be perfect as long as it is giving the correct results.

    About the stock: Look for a breakout above 50 DMA look at the volume in daily chart. if both are good it will be very positive for the stock in the short term

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  3. @SAN,

    ABAN reacting from its 50 day EMA . I have shorted ABAN below 841 .

    Yor charts are so crystal clear and easy to understand.

    Please kindly let me know for what targets should i hold .

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  4. @Kiran
    The stock has made a good reversal so for holding on to your shorts the stock must remain below 50 DMA.

    So look for today's closing price if it closes above 50 dma it may not be a good idea to hold on to your shorts.

    On the contrary if it shows weakness below 50 DMA you can hold on to your shorts.

    I will give the targets later. Just remember 50 DMA and the closing price.

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  5. Thanks San. Will do accordingly.

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  6. Hi San.

    Thank you for your insight. Appreciate it.

    I continue to ride long on this stock from 730 onwards after it crossed & closed above its resistance.

    The Volumes have been good beyond average volumes. Stock was in an upward channel after horizontal consolidation @ 730 - 760 & I am of the view that now that is out of the channel it is again going for a horizontal consolidation. Stop Loss I hold is at 790 with Targets ~1030.

    Today's weakness in my view can be attributed to Friday Profit Booking, Uncertainty to Carry position due to US Jobs Data later this evening & of-course consolidation to absorb the selling that his coming at Resistance. Of-course this stands with the usual caveat that the Markets support.

    Let's hope US Markets hold out later this evening bring us strength for Monday & Tuesday.

    Thank You once again. Have a Nice Weekend.

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  7. Thanks Mayur
    Have a Nice weekend i will update the ABAN chart during weekend.

    ReplyDelete