Sensex Technical View :
Hi friends
Overnight, two most influential charts S&P 500 and USD index have stalled at resistance and bounced from support respectively. Should one get worried on risky assets?
Have a look at 3 charts - i. S&P 500; ii. USD index; and iii. Charts of dollar denominated asset like Crude and Gold - to understand my apprehension
S&P 500 = Double Top.
Actually, it’s too early to call it double top because pattern formation is not complete, but yes the process has started till proven otherwise..
What is Double top? - The double top is a major reversal pattern that forms after an extended uptrend. As its name implies, the pattern is made up of two consecutive peaks that are roughly equal, with a moderate trough in-between. The pattern gets confirmed only when the lows between the peak is conclusively broken.
Source: www.stockcharts.com
But remember, in uptrend - most of the double top gets knocked out on the upside…and hence one should not jump out early. Right now - the S&P 500 stalling at the peak can only be taken as warning sign. The real danger will come for bulls only when S&P 500 takes out 1020 on the downside.
USD = Double Bottom formation.
Sell USD + Buy equities has now become too overcrowded a trade and sooner or later - things will reverse. This is Law of nature. No trend remains forever. The big question today - How should one take big bounce of USD from support area?
Source: www.stockcharts.com
Double Bottom: The double bottom is a major reversal pattern that forms after an extended downtrend. As its name implies, the pattern is made up of two consecutive troughs that are roughly equal, with a moderate peak in-between
As we can see in the chart above, the real unwinding of Dollar carry trade will begin when USD climbs past 76.5/50 dma.
Real Impact: on dollar denominated asset.
Most of the dollar denominated assets be it metals, Gold or crude have rallied on back of weak dollar. And so on dollar strength, they will be the first one to get hit. Please see the crude chart below and it tells the confusion of market participants
Source: www.stockcharts.com
Crude has been stalling around USD 80 and it seems a sharp pullback is probable if USD continues to strengthen. Gold is also going to take a hit if dollar strengthens.
The view remains the same expect a range bound move . Lower side supports 16350-16450 whereas upside resistance 16900 levels.
Till index remains in this range expect stock specific movements to continue.
Stocks to watchout :
Sun Pharma buy around 1420 with a stop of 1390 tgt 1500-1540 or above 1460.
FSL seems to be giving a fresh breakout. Buy if stays above 38.5 stop of 36.5 tgt 43-45 in near term.
SMALL CAP FoR MEDIUM TO LONG TeRm
RISHI LASER ,Navneet Publications,LLOYD Elec.
Fundamental analysis can be done before taking a long term call on above.
Also i would like to invite fundamental analysts who have a small synopsis on any stock with long term view can mail the same to us at analyseindia@gmail.com . We would like to post the same on this blog.
CMC LTD and GEOMETRIC software look good on short term charts. Above 1340 and 51 closing.
Nifty :: Once again an Incomplete Dark Cloud Cover bearish candle pattern .In bar chart seems buying pressure with high volume.. As per our last post in this up move red bar volume always increase and in green bar volume decreasing, its indicate corrective up move.. Target of buying pressure bar at 4837 in coming days as far as Nifty close below 5016.. Before 4837 watch strong support zone in between 4870 to 4890.. May be Nifty try to bounce beck from this level in intraday if open gap down.. Our strategy for 13th Nov. Sell at high (S.L 5006/5016) buy in deep (S.L 4837).. If Nifty open gap down then change your strategy as buy in deep (S.L 4870) sell at high (S.L 5006).. Resistance for up move at 4980/5010/5016/5053.. Supports at 4890/4879/4870/4857/4837..
Globus Spirits (BUY) CMP 88 (SL) 82 (Target) 94 / 99 / 104
Share of the company had a high of Rs.111 and low of Rs 74 and now ruling at a 15% discount to its issue price. Shares of this sector are enjoying PE in double digits. Selling pressure of IPO seems to be over, which does not leave any downside risk from here on.
Praj Industries (BUY) CMP 93 (SL) 88 (Target) 96 / 99 / 102
Share of the company had a high of Rs.111 and low of Rs 74 and now ruling at a 15% discount to its issue price. Shares of this sector are enjoying PE in double digits. Selling pressure of IPO seems to be over, which does not leave any downside risk from here on.
Praj Industries (BUY) CMP 93 (SL) 88 (Target) 96 / 99 / 102
hope u enjoyed shorting as told in chat box and as well as intra pick zydus well which is on ckt of 20% on yesterday
As told in yesterday nifty given profits in twice in shorts from 5005{5008} to 4980 twice longs also , & 1 timely long from 4970 to 5017 & short of more than 50 points from 4975 to 4917.65 given who followed chat box in live, Ok , Actually what happen yesterday and what will happen today, click charts to know more :-
Overnight, two most influential charts S&P 500 and USD index have stalled at resistance and bounced from support respectively. Should one get worried on risky assets?
Have a look at 3 charts - i. S&P 500; ii. USD index; and iii. Charts of dollar denominated asset like Crude and Gold - to understand my apprehension
S&P 500 = Double Top.
Actually, it’s too early to call it double top because pattern formation is not complete, but yes the process has started till proven otherwise..
What is Double top? - The double top is a major reversal pattern that forms after an extended uptrend. As its name implies, the pattern is made up of two consecutive peaks that are roughly equal, with a moderate trough in-between. The pattern gets confirmed only when the lows between the peak is conclusively broken.
Source: www.stockcharts.com
But remember, in uptrend - most of the double top gets knocked out on the upside…and hence one should not jump out early. Right now - the S&P 500 stalling at the peak can only be taken as warning sign. The real danger will come for bulls only when S&P 500 takes out 1020 on the downside.
USD = Double Bottom formation.
Sell USD + Buy equities has now become too overcrowded a trade and sooner or later - things will reverse. This is Law of nature. No trend remains forever. The big question today - How should one take big bounce of USD from support area?
Source: www.stockcharts.com
Double Bottom: The double bottom is a major reversal pattern that forms after an extended downtrend. As its name implies, the pattern is made up of two consecutive troughs that are roughly equal, with a moderate peak in-between
As we can see in the chart above, the real unwinding of Dollar carry trade will begin when USD climbs past 76.5/50 dma.
Real Impact: on dollar denominated asset.
Most of the dollar denominated assets be it metals, Gold or crude have rallied on back of weak dollar. And so on dollar strength, they will be the first one to get hit. Please see the crude chart below and it tells the confusion of market participants
Source: www.stockcharts.com
Crude has been stalling around USD 80 and it seems a sharp pullback is probable if USD continues to strengthen. Gold is also going to take a hit if dollar strengthens.
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