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Elgi Equipments ELGIEQUIP - Positional Trading I have based my analysis on Stan Weinstein's framework on Weekly chart where price structure, 30 weekly MA, volume and relative strength (not RSI) play a role in analysing the trend. Personally, I like stocks near ATH because it tells me that prior resistance has been broken. It is important for me to select stocks that have strong relative strength against a particular index such as Nifty Infra in this case (Elgi makes compressors and they are capital goods for industry) or Nifty 500 the broader market. The area where price is moving up (marked with a green upward arrow) is defined as Stage 2 structure according to Stan Weinstein. After this, we see a Stage 3 structure marked with a black box. During Stage 3 structure, price is rangebound and this period can be for many weeks or months. Remember, this is where we lose TIME. And for traders (and also Investors), TIME is important. I have marked a breakout candle (in orange) and that is where I like to enter provided I see confirmation on volumes (marked with orange in the volume histogram). Stan Weinstein says Positional Traders should ride the trend and exit stocks only when they start trading below the 30 weekly MA. He further says not to buy in LH LL structure because there is no way one can tell how far or how long can the fall be. See for yourself how often stock stays lower. The breakout candle of 10 August 2020 is of importance. Note the volume expansion. Also note that retracement is till the mid point of the 10 August 2020 candle and stock does not fall anymore. The candles of 9 November 2020 and 7 December 2020 are also very important. The latter breaks prior pre-pandemic resistance. Around this time the Relative Strength of the stock starts outperforming against the broader market i.e. Nifty 500. Analysis is easy on hindsight. What would I do if I were to take a buy call now? I will go long only when I see a breakout candle (marked in orange) confirmed by Volumes. Because Nifty is near ATH and in Stage 3 structure, there are two things that might happen. It may again start a new Stage 2 structure or form a Stage 4 structure which is start falling from the box. Hence in a market like this, I would shift to the Daily chart, add a 50 Daily MA and if the stock breaches 50DMA and goes lower, I will exit 50% of my holding. And if it breaches the nearest swing low, I will exit completely- the candle of 27 May 2021 on Daily chart. This is a variation from Stan Weinstein's framework. Disclaimer- This is not an investment or trading buy/sell advice. The purpose is to share knowledge and learn from the community. I am not invested in the stock as on date.
NSE:ELGIEQUIPEducation
by culturalDealer79974
2
DLF 10 YEARS BREAKOUT [ COMMING OUT OF HIBERNATION]DLF Has given a big breakout after almost 10 years of consolidation.. Though the breakout happened earlier it got failed because of covid second wave. It has formed a big base at the bottom and usually the more bigger the base , the bigger is the upward move. Its like constructing a building , the bigger the base below the ground the stronger and taller is the building. Real estate sector is in boom. There are few reasons behind it. First of all RERA Act has reduced a lot of uncertainty and fraud in the sector. The owner of the land are looking for bigger developers . Developers now have to open a escrow account for all transaction and make particular compliance certificates for environmental, fire , legal etc. Skilled and educated people are now working and are being employed , where as earlier all unskilled people where working. The real estate sector is at almost rock bottom, so valuations are good. This sector can take time to move but looks really good both fundamentally and technically. The Stock can take time to move Bearing the fact that there have been problem in this sector and company. But the targets are very high.
NSE:DLFLong
by adarshmanojsingh
My trade setup in BankNifty Futures for 12th June 2021My trade setup levels are created as below in BankNifty Futures for 12th June 2021. The Key target levels will be at High - 35680, Low 34760..if market breaks these levels, expecting the market go beyond in double the speed. Expecting Movements... Opening will be Flat or Downside Down move till 10.45 am Upmove or Sideways 10.45am to 12.15pm Again Down move till 2.30pm Again Recovery till 3.30pm Close near at Low of the Opening level of today **** May be a significant fast-fall today
NSE:BANKNIFTYN2021
by Uppada_Raghukumar
FINCABLES: Breakout! UPSIDE 16%Stock is moving up with very high relative strength and both technicals and fundamentals are strong in the case of market indices correlation. Price is in the trending phase with Higher-Highs of 0.3-0.5 fib retracement which is considered as a fast trending pace of a particular stock. Recently the stock has given a breakout over the distribution phase and now on the way to the sky. Below I have mentioned an overview that should be considered & necessary before you jump through this! Points to be Note (Technical + Fundamental) 1. Structrue- Higher: Highs formation (no aggressive formation yet) 2. 1D Critical Demand Zone Candle formation ( Act as a short term healthy correction) 3. Market Cycle: Distribution Phase with strong bearish pressure (1D) 4. Support: Above 50MA 5. Resistance: Pending (yet not made all-time high since 2017) 6. Retracement Levels: 0.3-0.5 Fib (fast pace) 7. Relative strength: Postive at 2.1 bounce form 0 shows 8. Volume: Low volumes with -6% Buyers may lead to strong volumes in upcoming session with highest strength oscilation of +40% with could be gain Relative strength which is settled near 2.00 from top 6.00 9. Beta: 0.65 Not aggressive... Reliable number for Value investors. 1. PE: 17 Considerable as compare to its peer polycab. 2. Marcap 2nd largest company followed by polycab India 3. D/E Ratio: 0.00 (7cr) almost zero as compared to reserves. Debt-free company 4. Book-Value: 2.29 More than double! Negative outlook but again considerable and remain neutral outlook as to its peer (market leader) having 6.20 polycab India. 5. Sales: Decreaded by 3% 6. Sales to OP correlation: Affected but very insignificant 7. Sales to PAT correlation: Surged by 17% YOY 8. ROCE & ROE is 19.6% vs 14.4% 9. Reserves: 13% Increased fairly 10. Investing Activities: 851Cr non-asset investing has been identified might influence future earning growth. That's it! NSE:FINCABLES
NSE:FINCABLESLong
by rajveerscolia