NF Hourly Chart !

What you see below is the Hourly Chart of NF. Its a line chart. There are times when too many gaps and volatile movements make your usual chart (Candlestick with all those wicks and Bar Charts with their tails) a bit of a mess to look at. It pays (literally) to switch to line charts to get a clear picture of the price action. After all Line chart is purely based on close price and its the Close which is very important !

What I want to illustrate from the above chart is;

1. The price action was a bit confusing with gaps and volatility as shown in the small inset pic (candlesticks). However when moved to line chart it clearly showed a small HNS formation complete with RSI Divergence.

2. The down leg shaded in red is also what one would say formation of LH and LL sequence.

If you ever get confused with your Candles and Bars you can switch to the LINE; which would have given you a clear short signal at 7885 with 20 pointer stop (which was tad above the right shoulder).

Therefore I repeat again if you get confused with a messy chart formation try and switch to line chart to get a clear picture !

Cheers !!!

Suzlon Views !!!

Today had a chat with few friends on ICharts and we got discussing Suzlon,vis a vis renewed interest of the government and the push in renewable energy sector ...Wind and Solar. Suzlon obviously cropped up for discussion. So googled some news on it which you can read here and here. In the second link something of interes is:

 "Wind energy might have missed big headlines but the deal street was buzzing with action. Dilip Sanghvi, chairman of Sun Pharma, bought 23 per cent stake in Suzlon Energy as a personal investment."


So is there a turn around story which will pan out in a year or two. Are the smart people in for the long haul???

The Weekly Picture:

On the weekly chart above strictly going by th TA tenets the price is below its all critical EMA's. For last few weeks its just moved sideways but a point to note is that there is plenty of trading going on as the volume shows. I know its a punter stock and mucho traded. It was one of the most active scrips in Nifty 200 today !

The Daily Drama;

As from the above chart you can see the Double Bottom did not really play out as a pattern. And now a small insignificant Double Top. The price is as the confluence of the 20/50 Ema's which are still bearish as the 20 EMA is still below the 50 EMA.

I would not like to trade it as daytrade, but yes a buy above 15 with a SL tad below 13 is good place for that ELUSIVE LONG HAUL ! Its going to be a very slow move, condidering that fact a single rupee and a half movement in it right now is A 10% move !!!!

If anyone out there has anything to add to the above and is following Suzlon actively do let me know in the comment section.

Cheers!!!

DCB Daily Chart.....A Rounding Bottom and a Tiny Flag !!!

Below is the daily chart of DCB and few insights from the chart;

1.  A nice rounding bottom from Oct 15 till April 16 where it did try to break out above the overhead GAP resistance.
2.  A pullback from their with small red candles all within the range of that big Green Expansion.
3. Price nestled between the 200 And 20 EMA.
4. If you were following this chart than a very good entry was at 75-77 level (marked in the yellow ellipse) where the price broke out of the 20/50 EMA,s and also the 20/50 EMA's crossed upwards signalling a positive note.
5. There is a Gap below unfilled that might be a cause of concern.

A buy above 91.60 (200 EMA on the chart...this might stall the move) with a Stop tad below the gap at 84 is a good way to play this. The immediate overhead target is 101-103. Lets see how this pans out or will drift sideways for few days to make yet another pattern the CNH ! For the conservative people a very safe idea is to keep watching and buy the breakout above 103 if accompanied by volumes.

Manappuram Gold Montly Chart...At Inflection Point !!!

Sensex and Its Indices Above (Green) and Below (Red) their 200 EMA Weekly !!!

NF Hourly and 15 Minutes Chart !

Posted above are the Hourly and 15 Min charts of Nifty Future;

Hourly (on the Left Side);

As you can clearly see and marked by red dashed line that the sequence of Price making Lower Highs and Lower Lows. The shaded area was the gap that got filled and Price did spend some volatile movements there. It needs to clear it with conviction. And also reclaim the previous Pivot above.

15 Mins (On the Right Side);

The situation is pretty same the recent pivot high is also at the previous congestion area.


Right now for NF the overhead resistances are in the range of 7790-7810 and then immediately above is the congestion area of 7830-50. Above that road is clear for another 100 points!!!
Having said that let me also add that Price normally tends to follow the path of least resistance and right now the path of least resistance look like the path downwards.

Charts and their interpretations are subjective. As the saying goes "Two men saw through the bars (candles in this case (:- ), one saw the dust (bear) the other stars (bull) ! In the end the only sane advice that has stood the test of time is the gujrati saying "Bhav hi Bhagwan Che"

Cheers !

Federal Bank Daily !

Below is the Hourly Chart of Federal Bank;

A nice CNH pattern that just did not play yet as twice price met with rejection at the old support now resi zone.

Agin I reiterate its a swing play than a day trade scalp !!!!