Om Sri Ganeshaya Namaha

Om  Sri  Ganeshaya  Namaha
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Friday, February 20, 2009

Look what I spotted

looks like i am crazy about heads and shoulders-- not the shampoo cos i dont have dandruff, but the bearish pattern on the 30 minute chart. neckline at 2755 but one could wait for a decisive fall below 2736 -- the recent low made. could give a move of 200 points. Move down may not be waterfall like as stochastics on daily charts is in oversold condition. Best is to use trailing stops for longs as well as shorts in such markets.
happy trading !!


VAN said...

good obervation, head and shoulders have good success rate..but always have your stop losses in place...good job

Unknown said...

Hi Lucks

I think too much importance is given to the october low of 2252. If you lok at the candlestick pattern on that day you will find that Nifty sharply climbed up and closed at 2524(27-10-2008).The subsequent climb up to 2994 in 6 trading sessions also shows the stability of 2500 level.

The next significant low of 2553 on 20-11-2008 once again affirms the strength of 2500 mark.

Nifty was able to hold above 2500 for almost 4 months from then.

I am of the opinion that sustained bad news alone can bring nifty to below 2200 levels.

May be the 4th quarter results may be able to pull nifty to 2200 and perhaps below that also.Or has the market already discounted that factor also?.

I will definitely put a good portion of my money at 2500. Till then only intra day opportunities. keep blogging. You are doing a good job

Lakshmi Ramachandran said...

thanx amit and murali. will try to get better with all ur encouragement.

Lakshmi Ramachandran said...

murali since technical analysis is not a perfect science your views might as well prove to be right. what is improtant is to be diciplined and unemotional while trading.

Unknown said...

very good article. what is the relaTION BETWEEN rsi AND Stock ch. which value of sci ie 14 slow or long to be seen for oversold overbought conditions. I think that nifty will rise upto 2880 levels and in between 2736 to 2880 before a fall to 2500 after March results coinciding with election results and depend upon the govt and regular budget may rise or fall to below oct 08 lows. I s there any statistics with any body about the election announcement to formation of govt about the movement of stocks etc

Lakshmi Ramachandran said...

both rsi and stochastics are momentum indicators. i have written about stochastics in the daily update for 24th. You can use slow or fast whatever suits you. you must backtest to see that