Parallel Channel
Infratel - Perfect example of bearish price channel.Infratel - Perfect example of bearish price Channel.
A price channel is a pair of parallel trend lines that form a chart pattern. Channels may be horizontal, ascending or descending. When prices pass through and stay through a trendline representing support or resistance.
How to trade this?
1. When the price hits the top of the channel, take a short position/exit long position
2. When the price hits the bottom of the channel, cover your existing short position/take a long position.
NIFTY VIEW FOR THIS WEEKNIFTY HAS GOOD SUPPORT NEAR 10800 and ALSO MARKED CHANNEL BOTTOM AROUND THE SAME LEVEL.
WE COULD SEE BOUNCE FROM THESE LEVEL TO 11076/11144 LEVEL. FROM THESE LEVEL ONE CAN SHORT WITH SL OF 11180 FOR THE DOWNSIDE TARGET OF 10740/10680
BANK NIFTY OUTLOOK FOR COMING SESSIONSBANK NIFTY VIEW:
25650/25900 which would act a immediate resistance in coming days. Beyond this BNF has resistance @ 26400-26500 range.
A bounce from current level is possible. Else at the lower side, it has good demand zone at 24450-24150 range where we can buy BNF for the resistance level targets.
The channel bottom is marked @ 23400 level.
Note: Moving beyond this needs a fresh view. The chart and view is for education purpose only.
-KG
glenmarkglenmark is breaking an important trendline upward.
though this chart is posted to show many patterns like rectangle , channel, flag, h&s pattern
and how they work in a trendling market.
wockpharma - at major trendline resistance as we can see its near major trendline resistance .
also moving in a small channel
breakout above 675
though one can buy with sl of swing low 634 .
Cholafin - S/R zone + channelCholafin - S/R zone + channel
It has formed a swing low inside channel a S/R zone
Can be a good long candidate
Channel break.Rpower can move higher if closes above 34.7, if it couldn't sustain it, it will retest 31.8.
Break of 31.8 level can take it to sub 27-28 levels. WATCHOUT.
P.S. Hammer on monthly is making me have a LONG side bias.
Bharti might make some move3 week long consolidation coming to an end, might show where is it headed.
P.S. Bharti Airtel has AGM on 28th August 2018.
It may be an event play.
Consolidating at multi week supportBroke out of channel and consolidating sideways,if sustains above those channel and line, longs can be taken.
Keep in watchlist
NIFTY OVERVALUED: Fundamental Approach.Is NIFTY' OVERVALUED? Fundamental View Based on P/E, P/B, Div'. Yld.
(A) Nifty' 50’s Price to Earnings (P/E)
Price-to-Earnings ratio (P/E) of the NIFTY' is
a simple market-valuation ratio.
A general guideline to help understand the valuation is:
P/E > 24 = Dangerously overvalued
P/E > 20 < 24 = Overvalued
P/E > 16 < 20 = Fairly valued
P/E > 12 < 16 = Undervalued
P/E < 12 = Highly undervalued
(mouthwatering valuations)
Current: 28.11 (MAX was 28.26 on 06 & 07th aug '18)
(B) Nifty' 50’s P/B (Price to Book value)
Price-to-Book value ratio (P/B) tells us how many times
an investor is ready to pay for a rupee of net assets.
Since book value is stable and less volatile than earnings,
some consider it better than the P/E as a measure of valuation.
If P/B > Median P/B = Overvalued
P/B < Median P/B = Undervalued
Current: NIFTY' 50's P/B: 3.74 > Median P/B: 3.4 (OVERVALUED)
(C) Nifty' 50’s Dividend Yield (Div'. Yld.)
Dividend Yield (Div'. Yld.) is nothing but the return
an investor gets in the form of dividend on his investment.
It is measured as dividend per share divided by price per share.
General Interpretation:
When stocks are cheap, dividend yields are high.
#1. Div'. Yld > Median dividend yield => Undervalued
#2. Div'. Yld < Median dividend yield => Overvalued
Current Scenario: 1.17, Median Div' Yld: 1.31
Fulfill Criteria #2. Hence Verdict: "OVERVALUED"
Historical Ref.: MAX - 2.24%, Min - 0.90%
Technical View:
Nifty'50 seems to have exhausted its momentum in the near term.
Time cycle suggests a sharp correction is overdue.
The upward channel is acting as a strong resistance and it seems that the market will respect the same.
The oscillators have turned distinctly negative (mentioned "MACD" in Chart), suggesting loss of momentum on the upside.
For Intra / Weekly levels refer "NIFTY: Week Ahead, Spot & FUT Levels Weekly(20/08/18) Basis"
If useful, don't forget to to Click in Like button.
Is IRB getting ready for a havoc move??Ladder formation (Another rare pattern)
Like INFY this stock is also following ladder pattern
but in downtrend.
Generally it is observed that on of these ladder steps,
stocks breaks the channel and moves with tremendous
momentum.
Is IRB ready for this move???
nifty pharma weekly chart STRUCTURE analysis nifty pharma was weak in the previous month while when market is setting record highs, this sector is silent as of now... as per chart it must be the one who may provide strength to nifty ! in the days to come !
How ascending channel breakout confirmations on OIL OIL: Now in case of OIL you can see a ascending channel breakout on up side but now questions is, Oil going to stay above that breakout level or not?
Now CMF showing that a clear buy volume above that level and RSI also break 60 level after long time and along with if can put 200 EMA you can get another confirmation for clear buy for hold until 340 level come.
Beginner can use this CMF/RSI/200EMA and Price and Volume combinations as system for trading and analysis, It can help you to understand more about demand and supply and use hourly chart for Entry and exit or use Fibo retracement level for entry or exit.
Educational 02: How To Draw Channels?This is the second education series on Channel (link of Education 01 given below),
In this educational post, I cover up points that validate a Channel and benefits of drawing a right channel.
Validation points are as follows:
Point 1: Two Parallel lines
Point 2: Higher High and Higher Lows in Uptrend and Vice-versa.
Point 3: Two compulsory touch points in order to draw correction trendline.
Three Touches are ideal also called "Three Touch Rule" (Will discuss further in next educational series)
What's Next:
1. How to identify trend with channels?
2. What is the right way to draw channels?
3. How to use Channels to find trades? ------------------------> NEXT
4. How to validate channel trades and manage risk?
5. Multi-time frame examples
Purpose: To educate retail traders like us, to make inform decisions and to become profitable in long run.
I WOULD APPRECIATE IF YOU COULD SHARE YOUR CHANNEL DRAWINGS IN COMMENT BELOW SO THAT I WOULD BE SURE THAT YOU FOLLOW WHAT IS BEEN POSTED AND WILL SET ME UP TO PROVIDE GREATER DETAILS IN NEXT ONE"
Thanks for your support,
Best Regards,
Neetesh
