Double top formation in Berkershire Hathway1) Exact double top formation in Monthly chart
2) bearish Divergence formed
Double Top
WHAT HAPPENED WITH MARUTI? 10000 to 6800 Journey!Maruti reached its 52W high at 10,000 and has been faaling continuously since then. The way Maruti % fell shocked alot of people, However it was not all that difficult to determine the fall and I will share, how I proceeded and made money in Maruti 5.71% .
On 25 July, Maruti reached its prior top weeks high zone of 9900-10000 again. It was a good resistance and If it is broken with Good volumes, Maruti can go upto 12K-13K, The next day Maruti reversed from the resistance zone and created a Double Top (as shown in the chart), also the Day Candle formed a Bearish Engulfing Pattern which indicates the start of the downfall.
Double Top Pattern is a fairly successful pattern and Share is expected to reach the neckline at 8200-8300 zones before changing its direction.
Maruti immediately the next day formed a large 500 points Bearish Candle which gave me good profits, And I continued waiting for my Initial target of 8200 (Neckline). In the meanwhile share gave a lot of green candles, But I since I was already in profits, I had margin of bear some green Candles.
Each time Maruti showed a couple of green candle, a Big Red candle wiped out gains forming Bearish Engulfing Pattern repetitively, which posted my confidence. Share reached up to 9000 after that Rose 250 points.
I though of squaring off position but the prior experience showed that there has not been 3 consecutive green candles in the past 9 months, So I decided to wait for the next day. Maruti reversed and showed red candles for the next 3 days and formed a 3 Blacks Crows pattern, which is sign of huge fall coming.
Near 14 September One Gap Up for formed, but the next day there was a Gap Down thereby forming a Evening Star Pattern.
On 19 September, Share finally reached my initial target of 8200 after I squared off and decided to play a LONG STRANGLE, to up my possibilities of winning. I took a Put and a Call at 3% Difference.
Soon The share broke the neckline and started to go more downwards, I squared up my call and waited for gains in Put.
Every person has different way of Analyzing. But the idea is to hold onto your faith and continue with your strategy. Even the basic Candlestick patterns have the ability to reap you awesome results.
Thanks, i hope this is Helpful.
Keep sharing the list of shares you want an analysis on. Thanks :)
Dow Jones : On the brinkIf closes below 23527 (i.e breaking the neckline), then sell, with SL: 26769, Target: 20285
Disclaimer: I am a novice in the markets, so please don't construe your trade basis this chart. I post it to see if my views holds true.
Maruti Suzuki - Double TopDouble Top has formed. But it is yet to break neck line. Wait for it to break neck line and if 1 day candle closes below 8313, then short Maruti Suzuki. Target 7750.
AUD/USD Technical analysisThe 4 Hour chart of AUD/USD has formed the double top pattern at the downtrend resistive trend line
So,It is expected to be bearish as the trend continuation form the resistance after correction.
GBPAUD H4 SHORTGBPAUD SHORT H4 SHORT ..... BECAUSE IT HAS FORMED DOUBLE TOP AND IT HAS BROKE AND RETESTED BACK... I THINK LONG TERM IS SELL..U CAN TAKE SELL ORDER ON THIS PAIR NOW.. PUT TP AT UR H4 SWING LOW
Sterlite techAccording to the double top formation, the target is 312, which is yet to be achieved.
In case that is achieved that would mark as a breakdown for the rising wedge thereby indicating more downtrend. As per the Rising wedge target: 265
Disclaimer: I am a novice in the markets, so please don't construe your trade basis this chart. I post it to see if my views holds true.
HCL TechCharts look weak with a Double Top formation. Near term price levels of 1030. In case the neckline breaks further downside to be seen.
Disclaimer: I am a novice in the markets, so please don't construe your trade basis this chart. I post it to see if my views holds true.
beml strong supportthere are more chances for double top so once it breaks its neckline you can further more add some position
RBL Bank - 1) Not able to break 580-- bearish divergence
2) Bank trade at 3.4x P/B and has been showing good performance
3) It is likely to show dip in price due to BANK NIFTY bearish view
4) Any dip should be used to buy
TCS - Topped out ?After a seemingly never ending rally, looks like TCS NSE:TCS is taking some break near 2000 levels.
IT NSE:CNXIT in general looks in profit booking mode and with dollar coming off from all time high, we could see further fall in heavyweights like TCS , Infosys, Wipro at least for the time being.
I can see that TCS formed a Double top around 2015 with a negative divergence and it has broken the neckline at 1972 levels.
It broke the trendline as well on Friday.
Looks like the stock is heading towards 1883.
Good opportunity to short here with a small stop loss.
Disclaimer: Views expressed here are my own, and should not be interpreted as an Investment Advice. Please consult your Financial Advisor for investments.
HDFC Ltd. - Double TopAfter 2 days of sharp upmove, looks like HDFC Ltd. NSE:HDFC is facing stiff price rejection around 1940 levels.
This resistance appears to be very strong as the stock has failed to clear it for third time in a row.
I can see a Double Top formation here with negative RSI divergence.
If the stock falls and sustains below 1915, looks like it will head back to 1865.
Good opportunity for option writers to go short here with stop loss at 1950.
Disclaimer: Views expressed here are my own, and should not be interpreted as an Investment Advice. Please consult your Financial Advisor for investments.
CNXPHARMA – Short term correction on cards ?After an explosive rally of about 1500 points (8000 to ~ 9500), Nifty Pharma NSE:CNXPHARMA has been facing stiff resistance around 9500 levels for past few days.
Also, I can see that it has formed a Double top with negative divergence and broke the rising trendline today.
Most major stocks like Lupin, Dr. Reddy, Cipla which appeared to give a breakout have retraced back their gains making a strong case for a false breakout.
(I had mentioned this possibility yesterday in my ideas on Lupin, Dr. Reddy and Cipla)
If it breaks 9100 levels, we could see a retest of 8800 levels before Pharma index resumes next leg of rally.
However, if it holds 9100, the rally might continue upward without further fall.
Disclaimer: Views expressed here are my own, and should not be interpreted as an Investment Advice. Please consult your Financial Advisor for investments.
HDFC Bank - Heading Southwards ?HDFC Bank NSE:HDFCBANK appears weak as the stock went down even when Nifty was up around 125 points.
I can see that the stock is facing heavy resistance around 2160 levels and has formed an evening star like reversal pattern with Negative RSI divergence.
Good opportunity for option writers with stop loss a few points above 2160.
Disclaimer: Views expressed here are my own, and should not be interpreted as an Investment Advice. Please consult your Financial Advisor for investments.
