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WaveTalks
Nov 14, 2016 2:27 PM

Vedanta- Dangerous Tube (Safe inside the Tube) 

VEDANTA LTDNSE

Description

Till the time it keeps moving in the tube which it did since bottom@58- it is good as soon as it leaks out of the tube that will 1st sign of worry for Vedanta.
20 period moving average has given good support at 195- so, any close below 195 will be the first sign of weakness.
Also at previous resistance zone 230-235 should be crossed & sustained for the next leg upside.

So, Let Vedanta cross 230-235 zone & sustain to give us a feel that -it can move further upside.

Trade active

10:45 Hrs 15th Nov2016

Day's High@230

Last Price@220

Zone 230-235 acted as resistance for the day- will the tube leak- let us wait & watch.

Trade active

15:30 Hrs 15th Nov2016

Closed at 209.75

Trade active

17:02 Hrs 21st Nov2016

Day's Low@192

Closed@197.50

The Channel Leaks..down
Comments
VadivalPranchi
Thank U Abhi
The chart puzzled me a lot short or long ................... Now I can find a trading opportunity in it,The only problem is that still the trading opportunity is to come.
WaveTalks
@ajayww2, Likely -if it fails to hold the channel, then selling pressure could be seen- sometimes -it will come out of the channel as sharp sell & by day's end it will close inside the channel to trap sellers -you need to take care of such scenarios because markets are very volatile these days.
nirav5
Thanks Abhishek! Vedl, DLF , PNB etc are high volatile stocks. They are traders' delight. For example Nifty's Historic Volatility is around 15 - 16% where as VEDL's Historic Volatility is around 54%. If their move is predicted appropriately they can rain money :-).

As you have mentioned VEDL has reached at an important junction. In December Government's extended subsidy for metal industries will be reviewed it can be the trigger. Of course we are more interested in trading charts.

So recent rally of Tatasteel, Hindalco can be watchful. I request you to publish your views on them in the same channel or differently for Metal industry stocks.
WaveTalks
@nirav5, Sure, time is the only issue, but will try my best.
NikhilGhodke
Thanks for the analysis Abhishek!
WaveTalks
@NikhilGhodke, Welcome Nikhil
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