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Detailed analysis on TATACHEM, a good opportunity to buy ?Hello traders, As market crashed, many stocks have given good downfall from ATH (All time high). We should look at it as an advantage to accumulate fundamentally good stocks for long term. Chemical and fertiliser stocks have also given a good retracement with the market. TATACHEM, one of the good fundamentally strong chemical company has corrected 27% from All Time High. -------------------------------------------------------------------------------------------------------------------------------------- On the chart, I have provided the Price action analysis and entries on it. Here is a note of fundamental analysis on TATACHEM. A short description of the company: Tata Chemicals engages in the manufacture of inorganic chemistry products with plants spread across four continents America, Europe, Africa and Asia. We are the worlds third largest Soda Ash and Indias leading vacuum evaporated iodised salt producer. Their salt works, spread over 36,000 acres, are the largest in Asia. We produce soda ash using synthetic and natural mining process. Of this, 3/4th capacity consists of natural soda ash allowing us significant cost competiveness. TATACHEM is one of the crown jewels of the Tata group, being the 3rd largest manufacturer of Soda Ash and 6th largest of Sodium Bicarb in the world, both of which have numerous uses - from glass, detergents and medication to being used in EV batteries ⚡ Here are some of the important points to note, and why I think this is one for the long haul: 📍 Soda Ash demand is booming, with increased usage of glass in buildings, increased production of EV batteries for vehicles, and increased demand water treatment. 📍 Tata Chemicals is on track to increase the capacity of Soda Ash production by 30% on top of the 4.4 million tonnes per annum (MTPA) of installed capacity and ongoing expansion, which help further capitalise on growing demand. 📍 Since Tata Chemicals have a cost advantage, relying on the mining of Trona from the US and Africa, they can also pass down the rise in raw material costs to the buyers, and therefore maintains a pricing/margin advantage as well. 📍 Tata Chemicals is now getting into the specialty chemicals space - used in medicines or in pharmaceuticals, or other specialised applications, attracting more sticky customers, higher pricing, better margins, better return ratios, and subsequently even higher valuations. 📍 It has been investing in areas like High-Density Silica, nutraceuticals and EV batteries to drive the next leg of growth. This Pros of the company are helping to boost the revenue growth of the company resulting as a good stock to invest for long term. The company has a wide scope in the future and is expected to give great profits. Given below are the links of my ideas of my other long term picks that are recently posted. Do check it out :) Market has crashed so the stocks have corrected from our entry prices. Don't worry, these companies are fundamentally good and therefore we can keep accumulating on dips. As always, simple and neat charts so everyone can understand and not make it too complicated. Will be posting more such ideas like this. Until that, like share and follow :) check my other ideas to get to know about all the successful trades based on price action. Thanks, Aniket. keep learning and keep earning.
NSE:TATACHEMLong
by Aniketyourtechnicalanalyser
5
A pill for missed opportunitiesPrevious parts of the post: Part 1: My Three Comrades: the Chart, the Screener, and the Watchlist Part 2: Two captains of the same ship The market is an element we take for granted. It can't stop when we're busy doing other things, and it can't work if the stock market is off and you personally have work days. The small investor's impact on the market is close to zero. Some may not like it, but I see it as a big plus. I'm not the only one. Even Peter Lynch wrote about this . It is because of our size that we small investors have the ability to get the best buy and sell prices on stocks. Just imagine an elephant and a mouse trying to drink water from a coffee mug. Who has a better chance? Like the best sales, attractive stock prices don't last long. This also applies to the period of increased stock prices that are interesting to sell. To make sure you don't miss this time, TradingView has an alert service. Why do we need an alert system? For our convenience. Once we have selected fundamentally strong companies, our next step is to keep an eye on their stock price so we can buy them at a price we can benefit from. You remember our strategy, right? Buy rooms in a great hotel, and even during a sale period. How do you monitor these "sales"? You have two options: to monitor the price chart yourself during the trading period, or set up alerts so that if the stock price reaches a certain level, you will receive an SMS message to your phone or email, or a push-notification in the TradingView app (depending on your settings). Agree, this is very convenient. So how do you set up the alerts? 1. First of all, you must open the chart of the stock you are going to configure the alerts for. 2. Then click on the "Alert" button at the top toolbar of the chart. 3. Set the alert parameters in the settings menu. How do I read the settings in this picture? If the Apple stock price is less than $130 per share, I will receive an alert every minute, all the time the stock is trading below $130. The alert I will receive will contain the following message: AAPL Less Than 130.00 If you don't want to get an alert every minute, set the trigger to "Only Once". 4. In the "Notifications" tab, you can configure where the alerts and the sound will go. The system of customized alerts will allow you to use your time effectively. You will not be chained to the monitor and you can calmly wait for the cherished message. In the picture you can see that alerts can come as: - push notification to your phone (if you have the TradingView app installed); - a pop-up window on your monitor; - a letter to your email address; - a message to a web address (advanced feature for developers); - SMS to your phone, but via email (i.e. your email service must have the ability to send copies of emails via SMS). As for my investment strategy, it's quiet enough to work on it even without alerts. Mr. Market doesn't often come with insanely interesting prices, so it takes time to get to the target values. It's like waiting for an astronaut from the Moon: he can't return to Earth in a day, you have to wait patiently, with the occasional peek at the situation. So, I'm concluding my series of posts dedicated to the basic functions of TradingView. I advise you to "play" with the platform for a while to get used to it as quickly as possible. In fact, it has a lot of features that you will discover over time. For now, that's it. In the following posts, we will begin to examine perhaps the most important aspect of an investment strategy, which is fundamental analysis. Get ready, here comes the part that will require the most concentration. But then you will be able to navigate this topic with ease. See you next time!
NSE:TATASTEELEducation
by Be_Capy
4
Two captains of the same shipPrevious part of the post: My Three Comrades: the Chart, the Screener, and the Watchlist Now let's move on to the fundamental analysis. Remember in this post I gave the example that a joint stock company can be thought of as a hotel, and owning shares can be thought of as owning one or more rooms in that hotel. So, imagine now that our hotel has a terrible foundation with lots of holes in it. What would happen to such a hotel? Of course, it could collapse, dragging everything down with it. It would also affect the value of the stock, and in our case, the value of the rooms. Because no one will want to buy rooms in such a hotel, on the contrary, they will try to sell them at any price, and then the value of rooms (stocks) will go down. The purpose of fundamental analysis is to understand how financially stable and profitable the chosen company is. Sometimes they say that a company has a strong or weak foundation - a generalized conclusion based on analysis of its financial statements. So, our task will be to find stocks of companies with strong foundations. Let's go to "Chart+" and select "Indicators" in the upper toolbar. A menu will open for you, where on the left we will select "Financials". Here we can select data from company reports: Balance Sheet, Income Statement and Cash Flow. They are issued quarterly and annually. Accordingly, you can select any indicator from the statements, such as revenue, select the period - quarter or year, and add it to the chart. In this way, you can study the dynamics of this indicator over time. In addition to the reporting data, you can add so-called multipliers to the chart. They are placed in the same menu after the "Cash Flow" > subsection called "Statistics". What is a multiplier and how to analyze the statements, we will discuss in our separate posts on the fundamental analysis, and now let's move on to the technical analysis. Technical analysis is a search for recurring patterns on a price chart in order to predict its future behavior. Let's go back to the time when candlesticks were invented. These charts appealed to traders so much that they began to look for repeating combinations of candlesticks, which served as signals of future price movement. For example, there is a combination called "bearish engulfing" . When the market has a clear upward trend, and in one day, a massive bearish candle appears, the body of which closes the body and shadows of the previous candle - it can herald the reversal of the uptrend. Or, if the market for three days in a row is drawn three black candles with massive bodies - they are called "three crows" . Traders interpret this as a sign that the downtrend is continuing. Doesn't that sound like an omen to you? In fact, people have made up dozens of similar patterns and many more that, like weather forecasts, don't always come true. You must have sensed that I cover this topic rather cursorily? This is due to the fact that I do not use technical analysis at all. That is, I do not make predictions based on recurring situations from the past. I do, however, use one of the tools of technical analysis, which is the average value of the stock price over the year. Not to make predictions, but to have a guideline: when to buy and when to sell stocks of companies with strong fundamentals. I will surely elaborate on this in my next posts, but for now, wrapping up the topic of technical analysis, I want to give one analogy. Stock price movements can be compared to the sea: sometimes it is calm and sometimes it is subject to strong waves. An investor can be compared to the captain of a ship who has to decide whether to put to sea now or not (i.e. whether to buy stocks or not). A captain who looks at the official weather reports and gauges is like an investor who uses fundamental analysis. And a captain who is only guided by omens and his gut is like an investor making a decision based on technical analysis. You can be captain number two without me, but how to become captain number one is the subject of my blog.
AMEX:SPYEducation
by Be_Capy
My Three Comrades: the Chart, the Screener, and the WatchlistToday we will continue to explore the fascinating world of stock investing. And TradingView will help us with that. I sincerely recommend making friends with this platform, as I haven't found anything more convenient to implement my strategy yet. After you have registered on the site, move to the main menu "Products" > "Chart+" . This is where you'll spend most of your time with the platform. What opportunities are in front of you: - Find companies to invest in; - Make a fundamental analysis of the companies; - Make a technical analysis of stock charts; - Receive alerts on the buy or sell price of a stock that is right for you. So, let's break down each item. How to search for stocks on TradingView? Hopefully, you've already entered the "Chart+" section. In the upper left corner is a line to enter the ticker of the stock. If you don't know the ticker, just enter the first letters of the company name: the system will find the ticker that corresponds to that company on its own. However, keep in mind that stocks of the same company may be traded on different exchanges from different countries, so sometimes one company may have several tickers. As an example, let's enter the name "Tesla" in the search bar to open a chart of their stock. As we can see, the system tells us that Tesla is traded on NASDAQ and some exchanges in other countries. To the right of the search bar is a button with a choice of time frame. You can try different time frames, but for me the most important is the time frame of 1 day (i.e. one candle shows the price change for 1 day). So, the way of selecting a company via the search bar is convenient when you know at least its name. But there are thousands of companies listed on the stock exchange, and it is impossible to know the name of every company. In this case, the "Stock Screener" will help us. It is located in the lower left corner. Clicking on the Screener will open a list of stocks, filtered according to the parameters you set (you can customize the parameters by clicking on the bright blue button "Filters" on the right). Let's go to filters and configure the parameters we need. First of all, let's select the country - (for example), the USA . In the second turn, on the tab with general parameters, let's choose the instrument type - common stocks , and let's choose the exchanges - NYSE , NASDAQ , and one more American exchange - NYSE ARCA . Now we have a list of all stocks, which are traded on the exchanges that we have chosen. What we are interested in, we can add to the "Watchlist" . This is the first (top) button in the menu on the right. Just right-click on the ticker from the screener and select "Add to Watchlist". The same can be done by right-clicking on a chart. Switching between the tickers in the Watchlist you will consequently switch between the charts. So, we have figured out how to find the shares of a company. In the next post, let's see what we have in terms of fundamental analysis of companies.
NASDAQ:TSLAEducation
by Be_Capy
Gold outlook 21/12/2022Gold price needs to recapture the previous high of $1,821 to challenge the multi-month top at $1,825. Acceptance above the latter will initiate a fresh upswing toward the $1,830 round figure. The 14-day Relative Strength Index (RSI) has turned but holds comfortably above the midline, suggesting that any pullback in Gold price remains a ‘good buying’ opportunity. Further, the bullish 21-Daily Moving Average (DMA) at $1,782 is on the verge of cutting the horizontal 200DMA at $1,785 from below, awaiting confirmation of another Bull Cross. The upward-sloping 50DMA pierced through 100DMA for the upside last week, which could be partly attributed to the renewed upside in the Gold price. However, if Gold bulls fail to take out the $1,825 resistance, then a reversal toward the 200DMA support. Ahead of that the December 14 high of $1,814 could be tested. Also, the $1,800 threshold will offer strong support to Gold buyers should the retracement gather traction.
TVC:GOLD
by OAurthor
A little bit about volumes and the master of all averagesSo, let's refresh our knowledge from the previous posts (read part 1 and part 2 at the links): - The chart is based on the data from the tape; - The X-axis is the time scale, and the Y-axis is the price scale; - To avoid having to analyze a huge number of trades, interval charts were invented for convenience; - The most popular chart type is the Candlestick chart; - The candlestick consists of a body and shadows (upper and lower). The body is drawn at the open and close prices of the interval. The shadows are built by the maximum price (high), and the minimum price (low); - The time interval for one candle is called a time frame. The smaller the time frame, the more detailed information we get about the price changes. In addition to information about the price dynamics, from the stock chart, we can get information about the dynamics of trading volume. These are bars that we see below the candlesticks. They are also drawn on the basis of information from the tape. Let's return to our example: FB $110 20 lots 12/03/21 12-34-59 FB $115 25 lots 12/03/21 12-56-01 FB $100 10 lots 12/03/21 12-59-12 FB $105 30 lots 12/03/21 12-59-48 If you add up all the lots of trades in the interval from 12-00-00 to 12-59-59, we get 85 lots. Then the lots need to be multiplied by the number of stocks in one lot, for example, 100. It turns out that 8500 shares changed their owners in 1 hour. This information is displayed as a bar below each candlestick. My strategy does not use a trading volume analysis, but it is important to understand that increasing trading volumes are a sign of increasing attention to the stock. However, this attention does not always translate into higher prices. If there is negative news about a company, we will see both a drop in the stock price and an increase in volume. What is constantly used in my investment strategy is the moving average . What is it? This is the average of the close prices of a selected number of candles, starting with the last one. I use the average of the close values of the last 252 candlesticks. Why this number? The number 252 corresponds to the average number of trading days per year on the NYSE and the NASDAQ. That is, in fact, the average annual moving price . Why is it moving? Because every day there is a new candlestick with a new close value, and it begins a new calculation of the average value of the last 252 daily candlesticks. You can plot the moving average chart on a candlestick chart and see how far the current price has "run away" from the annual average price. I will tell you exactly how to apply this in investing in the next posts, and that's all for today. Finally, I will ask you to reflect on one thought: One who is true to the golden mean will always find something that someone else missed and give it to someone who is afraid to miss it. See you in future posts.
NSE:BANKNIFTYEducation
by Be_Capy
2
Japanese Candlesticks: Game of Body and ShadowsSo, in the last post we learned how to build a simple line chart based on the tape. Each point on the chart is defined by coordinates from the time (X scale) and price (Y scale) of a trade. But some stocks are traded at a frequency of hundreds of trades per second, at different prices. The question arises: which trade price to choose from this set? Interval charts were invented to solve this question. The most popular is the Candlestick Chart . They appeared in Japan three hundred years ago, when the Japanese exchanges were trading rice. They were invented by a trader named Homma. Apparently, being tired of drawing a lot of points on charts, he decided that it would be more convenient to show the price change over the time interval. So, what he came up with. Let's take a time frame equal to one hour and plot a 1-hour candle on the basis of the following tape: FB $110 20 lots 12/12/22 12-34-59 FB $115 25 lots 12/12/22 12-56-01 FB $100 10 lots 12/12/22 12-59-12 FB $105 30 lots 12/12/22 12-59-48 A candle consists of a body and upper and lower shadows. Like a float. The body is formed from the open and close prices of a certain time frame. In our case the hour interval is from 12-00-00 till 12-59-59. Only 4 deals were concluded in this time interval. The price of the first deal is $110, which is the opening price of the period or the so-called " open ". The price of the last deal was $105, which is the period closing price or " close ". These two prices are enough to form the body of the candle. Now let us move on to the shadows . The upper shadow is drawn at the maximum price of the interval (115$) and is called " high ". The lower shadow is drawn at the minimum price of the interval ($100) and is called " low ". The shape of our candle is ready. However, it should also have a content, namely the color. What is it for? Let's take a look at another candle. Here we can see where is the high and where is the low. But how do we know which is the open or the close? After all, the open is not always at the bottom of the candlestick body, as in the previous example, it can be at the top. To understand where is the open and where is the close, Homma has invented to paint the body of a candlestick in black, if close is lower than the open, i.e. if the price in the interval is falling (falling candle or bearish candle ). But if close is higher than open, the body of the candle remains white, it will indicate the growth of price during the interval (rising candle or bullish candle ). Sometimes a candlestick has shadows, and the close price is equal to the open price. Then it will look like a cross. This candlestick is called a doji . White and black are the classic colors for the bodies of Japanese candles. However, you can come up with your own colors. If you want the rising candles, for example, to be blue, and the falling orange - you're welcome. The main thing is to make it convenient and understandable for you. So, one candlestick allows us to understand where we had the first trade, the last trade, the price maximum and minimum in a given time frame. But it does not allow us to understand how the price changed within the interval: when the maximum or minimum was reached and what was happening within this price range. But the problem can be easily solved if we switch to a smaller time frame. If we look at the daily candlesticks (this is when the time frame of one candle is equal to one day), and we want to see what was during the day - we switch to the hourly time frame. If we want to see even more details - we switch to 15-minute candles and so on down to the seconds. But you and I will most often use daily timeframes, so as not to be distracted by the fluctuations that occur during the day. To be continued :)
NSE:TATAMOTORSEducation
by Be_Capy
2