Friends,
Its been rightly said by many veteran traders and investors that if you need to find out a a trading or investing opportunity then it there should be a strong trend. Richard Wycoff in his theory mentioned that we must identify the original trend in the market, how strong is the trend. And after that we should find out stocks which are stronger than the overall market for bullish trades and weaker than the overall market in bearish trade.
If we consider the above said theory then it seems the overall sentiment and overall market seems cautiously negative. And we could finally see that TCS seems weaker than the overall market.
After rallying from 1390 in march 2018 to 2275 in sept 2018 for 7 odd months the stock is showing negative signs.
TCS traded below the trendline in early october.
The current price is successively sustaining below the 21 day EMA
The green zone suggesting a congestion zone
The further inability of the stock to sustain above the 21DEMA and a fall below 1884 will trigger further selling pressure on the stock.
So traders can go Short below 1884 and the stock could test 1730 & 1600 which are 61.8% & 76.4% retracements respectively in the coming 10-15 weeks
Trading Mantra :
"Stock Market is the story of cycles and of the human behavior that is responsible for overreactions in both direction" _ Seth Klarman
Billion Dollar Question to ask to yourself:
While taking positions in market do you at all think in which phase or the cycle the current market is placed ?
Thank you for sharing.....
Happy Reading.....
Happy Trading.....
Be a Wealthy Trader.....
Its been rightly said by many veteran traders and investors that if you need to find out a a trading or investing opportunity then it there should be a strong trend. Richard Wycoff in his theory mentioned that we must identify the original trend in the market, how strong is the trend. And after that we should find out stocks which are stronger than the overall market for bullish trades and weaker than the overall market in bearish trade.
If we consider the above said theory then it seems the overall sentiment and overall market seems cautiously negative. And we could finally see that TCS seems weaker than the overall market.
After rallying from 1390 in march 2018 to 2275 in sept 2018 for 7 odd months the stock is showing negative signs.
TCS traded below the trendline in early october.
The current price is successively sustaining below the 21 day EMA
The green zone suggesting a congestion zone
The further inability of the stock to sustain above the 21DEMA and a fall below 1884 will trigger further selling pressure on the stock.
So traders can go Short below 1884 and the stock could test 1730 & 1600 which are 61.8% & 76.4% retracements respectively in the coming 10-15 weeks
Trading Mantra :
"Stock Market is the story of cycles and of the human behavior that is responsible for overreactions in both direction" _ Seth Klarman
Billion Dollar Question to ask to yourself:
While taking positions in market do you at all think in which phase or the cycle the current market is placed ?
Thank you for sharing.....
Happy Reading.....
Happy Trading.....
Be a Wealthy Trader.....