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TCS - A GOOD MOMENTUM PICKTCS LOOKS GOOD ON DAILY TIME FRAME AND A BUY CAN BE INITIATED. I have analysed it on daily time frame considering few points. Key Observations- 1. Fibonacci Retracements - Fibonacci retracement levels are horizontal lines that indicate where support and resistance are likely to occur. They are based on Fibonacci numbers. Each level is associated with a percentage. The percentage is how much of a prior move the price has retraced. The Fibonacci retracement levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%. TCS managed to retrace around 61.8% i.e 1980 from bottom of 1557 which it made around on 19th March. A move above 61.8% suggests a Trend Reversal for any stock. TCS failed to sustain above 61.8% i.e 1980 and it fell back to 50% i.e 1890. For about a month 50% i.e 1890 was crucial level for TCS to break, which it managed to sustain this time. (shown by arrows in graph) 2. Channel Analysis - A price channel is a continuation pattern that slopes up or down and is bound by an upper and lower trend line. The upper trend line marks resistance and the lower trend line marks support. Price channels with negative slopes (down) are considered bearish and those with positive slopes (up) bullish. For explanatory purposes, a “bullish price channel” will refer to a channel with positive slope and a “bearish price channel” will refer to a channel with negative slope. TCS is currently in a good bullish channel for last 1 month and currently respecting the trend lines. Based on this, TCS will continue to move UPWARD and good returns can be generated. 3. Moving Averages - A moving average (MA) is a widely used technical indicator that smooths out price trends by filtering out the “noise” from random short-term price fluctuations. The most common applications of moving averages are to identify trend direction and to determine support and resistance levels. For short term Trading Purpose we can considered 9 day and 21 day Moving Averages has seen a good positive cross over of 9 and 21 day Moving average. TCS Has also managed to sustain above its 9 day moving average for few days, which shows its in strong UP- trend. 4. RSI - Relative Strength Index (RSI) is momentum oscillator that measures Speed and change of Price movements. RSI oscillates between 0 and 100. Traditionally RSI is considered overbought when its above 70 and oversold when below 30. RSI of TCS has hovering in mid 50 to 60 for last few days. This also suggests that there is strength in Up-move of TCS. 5. Directional Movement Index - The DMI is a technical indicator that is typically shown below or above the price chart and is calculated by comparing the current price with the previous price range. DMI then displays the result as an upward directional index (+DI) and a downward directional index (-DI). The DMI also calculates the strength of the upward or downward movement and displays the result as a trend strength line called Average Directional Index or ADX. +DI and -DI show up as two separate lines, colored green and red, respectively. When the red line is above the green line, it means the price is dropping. When the green line is above the red line, it means the price is rising. If the - DI and +DI are crisscrossing back and forth, there likely isn't a price trend going on, and the price is moving sideways. An ADX reading above 25 signals a strong trend is in place. Based on this explanation, DMI of TCS is currently at 25 which is strong, suggesting strength in price movement. SUMMARY- [/b ] Considering all the above points, we can initiate a trading Buy in TCS at 1949 with Stop Loss of1885 ( which is just below 50% retracement). Trading Target can be set at 2050-2075-2100.
NSE:TCSLong
by EquityPulse
AXIS BANK – A GOOD LONG-TERM PROSPECT?AXIS bank has corrected 60% from its highs of 760 and had touched 300, but does it make AXIS Bank a good investment opportunity? I have broken it down to you and analyzed AXIS bank on WEEKLY Time-Frame. Key Observations- 1. VOLUME ANALYSIS- • SELLING CLIMAX (Green Arrows)- A climax occurs at the end of bull or bear market cycle and is characterized by escalated trading volume and sharp price movements. The beginning of selling Climax is often signaled by steadily increasing volume on sell side of market as growing pessimism accelerates the downtrend. • On this weekly chart of last 12 years (Green Arrows), volume climax has happened 3 times and once all selling pressure is over, there was a good Up-move. • Volume Spikes (Dotted blue and Red lines)- Unusually large volume, graphed on chart. If one day’s volume is two to three times the average volume, it will appear as spike. Volume spikes are plotted on Ascending Triangle formation. Volume spikes on trendline Support and Resistance confirms visibility of big buyers and sellers. • Currently AXIS bank is at demand Zone and is witnessing huge volume spikes. 2. DEMAND AND SUPPLY ZONE (Rectangle box)- • AXIS bank is currently in good demand zone (Price Range 372-340), it has tested this level in year 2014, 2015 and 2020. It also managed to test strong support zone of 300 which it couldn’t break for 4 years from 2010 to 2014. AXIS bank managed to close above this demand zone of 370 to 340 for last 5 weeks which is a positive indication. 3. RELATIVE STRENGTH INDEX (Blue UP Arrows)- • Relative Strength Index (RSI) is momentum oscillator that measures Speed and change of Price movements. RSI oscillates between 0 and 100. Traditionally RSI is considered overbought when its above 70 and oversold when below 30. • Over the last 12 years AXIS Bank has faced 6 oversold levels (Blue Arrows) where the RSI has touched below 30 levels on weekly chart. AXIS Bank managed to gain momentum as soon as it reached over sold levels and bulls managed to change the trend up. Currently AXIS Bank has reached extreme Oversold levels and history suggests that it could be a good entry point for new buying. 4. FIBONACCI RETRACEMENTS – • Fibonacci retracement levels are horizontal lines that indicate where support and resistance are likely to occur. They are based on Fibonacci numbers. Each level is associated with a percentage. The percentage is how much of a prior move the price has retraced. The Fibonacci retracement levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%. • AXIS Bank after hitting a low of 285 managed to retrace till 465 which is 38.2%. Currently it is stuck at 23.6% ie (400 ). 5. PRICE CHANNEL- • A price channel is a continuation pattern that slopes up or down and is bound by an upper and lower trend line. The upper trend line marks resistance and the lower trend line marks support. • Price channels with negative slopes (down) are considered bearish and those with positive slopes (up) bullish. • For explanatory purposes, a “bullish price channel” will refer to a channel with positive slope and a “bearish price channel” will refer to a channel with negative slope. • AXIS Bank has broken its bullish pattern and is facing resistance around 400, which is negative for short term SUMMARY – Looking at all the above points, we can conclude that AXIS Bank can be accumulated at current levels of 360 to 375. Second phase of buying can be done when AXIS bank is able to sustain its 400 level for few weeks. A medium-term target can be placed at 480 to 522 and long-term target of 600 can be achieved in few years. In Short term, we could see some pressure, but Axis Bank is a good Investment Prospect currently.
NSE:AXISBANKLong
by EquityPulse
3
TCS faced Resistance at Higher level & Indicator turn negative Hi Trader, TCS faced Resistance at Higher level (see chart) & Indicator also turn negative as well. Bearish view due to below point: 1) TCS faced Resistance at Higher level 2260-2290. Got 3 times reverse from there. 2) TCS will major support at 2030 -2050 price range for good risk reward trade. 3) Big Bearish Engulfing candle form at daily chart . 4) Bearish Engulfing candle form with high volume more than 20 day average. See chart for more detail What Indicator are saying: 1) RSI gone below 50 level . Bear will more control stock now. 2) Force Index oscillator gone below zero level mean bearish trend. Happy Learning ); Disclaimer : This is post only for educational purpose . Do your analysis before taking position or trading.
NSE:TCSShort
by karanwealthape
2
How to identify Chop Zone , Use of Volume Oscillator You can see the Choppy Zone indicator will work fantastically when used for Day candle chart to avoid choppy area , You can do two major identifications with this 01) Choppy Zone are created by Smart Money because they will be accumulating the stocks ,so you can come to know once you reach choppy zone and indicator will show you its choppy 02) Check the volume it will be keep increasing and decreasing with out Major difference so you will understand the smart money is buying 03) Use of Volume oscillator for identifying the increase in volume accumulation and use investments decision with the smart money so you can grow your Investments and your life can be very beautiful Cheers
NSE:EXIDEIND
by shiv2798
6
Long: Stochastic Crossover in a non-trending securityFrom Swing Trading for Dummies using the following strategy Identify whether a trading range exists by using ADX (preferably below 20) Wait for %K to enter the overbought or oversold territory. Buy the security when %K crosses up through %D and above the oversold zone. Exit after stochastics reaches the opposite zone. Alternatively, you can exit after a return target is achieved or a certain number of days have passed.
BSE:AXISBANKLong
by ramanarvind
1