Hi,
Taking forward my "ridiculous analysis" and adventures with chart patterns.This post is in relation with the previous post on Suzlon (link below under "Related Post").Check out this new chart ,I have use the same chart ,same stock,and the same chart pattern.The target this time I have given "appears achievable", below are some details of the chart.
Suzlon, as it broke down and made a Symmetrical Triangle Pattern.The measuring move target will be approximately 40 as the width of triangle is 33 and it broke down from 73 level.The target sounds achievable and trade appear quit lucrative.If you check the previous price action it made a low of around 33 during the bear market.Therefore 40 seems all the more convincing.I can very easily build a bear case for the stock with this kind of analysis.
This post is the last one in this "Fun with Chart Patterns" series,if you want to have more entertainment, you need to do the following.
1)Find a stock 50 Rs stock or under
2)Check out it's chart and find a bearish chart pattern
3)Chances are high that all patterns will give negative targets
4)If you are feeling lazy to search then check out TTML,DLF,HDIL,ISPATIND,IDEA ,just to name a few.
Why this failed pattern is so common?
The answer is simple it's because we witnessed a sharp V-Shaped recovery after the bear market and the election result gap, just made the things worst for chart pattern followers.And now when "Time" is finally catching up with "Price" we are getting this pattern. Trend-lines drawn to make this pattern will get violated someday or the other.In these cases it is on the down side,giving unreasonable negative targets
Now my question.
If the break of trend line was on the upside,would you consider buying this stock?
All the chart patterns if they give bullish targets, will find people lined up to put their hard earned money in that stock idea.The bullish targets will always be possible as a stock can rise to infinity.However the downside targets are limited to zero!!It seems even the ancient mathematicians had "the bullish bias" they never put a ceiling on the numbers but made zero as the base number!!
Cheers
.png)
Related Post
Suzlon : Short with a target of -30 (yeah right minus 30)!!
Taking forward my "ridiculous analysis" and adventures with chart patterns.This post is in relation with the previous post on Suzlon (link below under "Related Post").Check out this new chart ,I have use the same chart ,same stock,and the same chart pattern.The target this time I have given "appears achievable", below are some details of the chart.
Suzlon, as it broke down and made a Symmetrical Triangle Pattern.The measuring move target will be approximately 40 as the width of triangle is 33 and it broke down from 73 level.The target sounds achievable and trade appear quit lucrative.If you check the previous price action it made a low of around 33 during the bear market.Therefore 40 seems all the more convincing.I can very easily build a bear case for the stock with this kind of analysis.
This post is the last one in this "Fun with Chart Patterns" series,if you want to have more entertainment, you need to do the following.
1)Find a stock 50 Rs stock or under
2)Check out it's chart and find a bearish chart pattern
3)Chances are high that all patterns will give negative targets
4)If you are feeling lazy to search then check out TTML,DLF,HDIL,ISPATIND,IDEA ,just to name a few.
Why this failed pattern is so common?
The answer is simple it's because we witnessed a sharp V-Shaped recovery after the bear market and the election result gap, just made the things worst for chart pattern followers.And now when "Time" is finally catching up with "Price" we are getting this pattern. Trend-lines drawn to make this pattern will get violated someday or the other.In these cases it is on the down side,giving unreasonable negative targets
Now my question.
If the break of trend line was on the upside,would you consider buying this stock?
All the chart patterns if they give bullish targets, will find people lined up to put their hard earned money in that stock idea.The bullish targets will always be possible as a stock can rise to infinity.However the downside targets are limited to zero!!It seems even the ancient mathematicians had "the bullish bias" they never put a ceiling on the numbers but made zero as the base number!!
Cheers
.png)
Related Post
Suzlon : Short with a target of -30 (yeah right minus 30)!!
@ rm
ReplyDeleteShould I call you rm or Sherlock Holmes Sir!!
Above post is specially for you,took my minus 30 target as a joke.
So I have published this chart pattern trap for you to fall!!
Now what will call me ?...Shylock? :))
I know you will not like the above idea...after all getting pain 30 rs is a better option
My chart analysis and your buying strategy will redefine the rules of value investing!!
What do you say should we start a hedge fund?
There is still a lot of money left with the world and we can manage a bailout if something goes wrong....what do you say?...are you game?
Enough for today...the midnight Oot quota is over
Cheers :))
hi
ReplyDeleteit is been long time...just seen the other day ur comment ..purchase of software at Nehru Place..
can you write down a list of shopping places like this in Delhi so that when i go next time...will try to do bargain hunting
btw, why this change in trend in your blog pattern??
sri
Hi Sri...
ReplyDeleteLong time...how are you?
Nehru Place...he he...well that's a place where you can't do any bargain hunting because you get "hunted" there!!
All over the market you will get what you want...after buying(no matter at what price you buy) you will still regret that you bought it expensive!!
Change in trend in my blog pattern?
How?...:)
anuj
ReplyDeleteused to see S&R levels ...now suddenly gone offtrack from the market...is not change in trend?
reg shopping list....pl.list it out..am really serious to know the places..as i may visit very soon..visit may incl ur native dehradun also..
Hi Sri
ReplyDeleteOh that way...it was getting a bit tough for me as I dont have any charting software...I developed a stiff back as well...so decided to make things slow..will start it again soon hopefully
I dont know any specific shop (that's not required as well)went there to buy some RAM for my old PC...you can check its website
http://www.npithub.com/
Cheers
Good Morning Anuj!
ReplyDeleteThanks for dedicating an entire post to me. I don't mind your calling me "Sherlock Holmes Sir" but 'deductive reasoning' will put me closer to "my dear Watson"!
And you can't trap me with a chart - simply because I can't read them, the only chart I could read successfully was Newton's cooling curve. :)
Always game for founding a hedge fund. I believe that the fund manager's earnings are inversely proportional to the fund's returns - so people like me will be an asset there!
Cheers!
@Anuj
ReplyDeleteOn a serious note, I was under the impression that you were using Metastocks. Even suggested to friends that they should contact you for help on that. Sorry if you get an avalanche of queries - at least you know whom to blame. :)
Best regards.
@r m
ReplyDeleteHere on Sunday...doing extra class?
No...I haven't received any queries regarding metastock...I am completely dependent on I-Charts,Indiabulls RT,quote.com and basic excel...Although I have metastock and amibroker..but dont know how to configure for RT data using volume digger or PIB
What happened to that option strategy that you were working on?
Have a nice weekend...cheers