August 16, 2010

Broadcom Corp Near 200 DMA

  • 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 before opening bell

  • 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.

Nifty 5 minutes chart breaks down

  • 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

Reliance Industries Weekly Triangle


Nifty Weekend update

  • 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

Ascending Triangle and 200 DMA


    Channel with 200 DMA

    • 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. 

    Inverse head and shoulders and 200 DMA

    • 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.

    The perfect breakout

    • 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.

    Rounding bottom and 200 DMA

    • 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.