Here is a brief overview of Reliance Power based on Technical Analysis...
As per the Trend Indicators, this stock is in a strong down-trend.
As per the Fibonacci retracement working:
On 11th Nov, the stock hit a high of 192.8. From there, it reached 147.7 on 22nd Dec.
38.2% Retracement level is 164.9, which was the resistance level. The stock reached 162.2 on 6th Jan 2011 and could not break through the above resistance. It turned again and came down to 133.2 on 17th Jan 2011.
Now, the 38.2% Retracement level is 144.27. This is the current resistance level for this stock.
As per the Japanese Candlestick chart, there is a double bottom formation @ 133-137 levels. This level is the support level for this stock.
The price should close above 144.27 to show some signs of trend reversal.
As per the near term Moving Averages, the resistance level is 143.
As per the short term Moving Averages, the resistance level is 148.
The 200day MA is @ 157.2
The MACD also have not signalled a "Buy" yet.
For the Risk Aversive Investors:
In the short term:
One can take small position into this stock, if its price closes above 145 and stays above the same level for at least 2 days.
In the long term:
One can enter/accumulate this counter above the 200d MA. (157.2).
For the Risk Taking Traders: (Very short term trading perspective)
One can buy at 133 levels with a target at 142. (This is quite risky). :-)
Cheers
Selva.
As per the Trend Indicators, this stock is in a strong down-trend.
As per the Fibonacci retracement working:
On 11th Nov, the stock hit a high of 192.8. From there, it reached 147.7 on 22nd Dec.
38.2% Retracement level is 164.9, which was the resistance level. The stock reached 162.2 on 6th Jan 2011 and could not break through the above resistance. It turned again and came down to 133.2 on 17th Jan 2011.
Now, the 38.2% Retracement level is 144.27. This is the current resistance level for this stock.
As per the Japanese Candlestick chart, there is a double bottom formation @ 133-137 levels. This level is the support level for this stock.
The price should close above 144.27 to show some signs of trend reversal.
As per the near term Moving Averages, the resistance level is 143.
As per the short term Moving Averages, the resistance level is 148.
The 200day MA is @ 157.2
The MACD also have not signalled a "Buy" yet.
For the Risk Aversive Investors:
In the short term:
One can take small position into this stock, if its price closes above 145 and stays above the same level for at least 2 days.
In the long term:
One can enter/accumulate this counter above the 200d MA. (157.2).
For the Risk Taking Traders: (Very short term trading perspective)
One can buy at 133 levels with a target at 142. (This is quite risky). :-)
Cheers
Selva.
Very gud technical analysis,
ReplyDeleteWe should try to find some interesting stocks, where we should look for some positive growth. The market is very sensitive and is in doldrums at the moment, Fiscal policy announced yesterday, cracked the market further, even though the market was well aware of the possible outcome from new financial policy. Bears are always on look out for reasons to pull the market down....
Thanks Kuldeep. Regarding interesting stocks, I'll try to post something during this weekend...
ReplyDeleteVery nice analysis....Today was the blood bath for ADAG stocks...too much loss in single day....what should be stretegy for ADAG stocks? I have infra, rcom and rpower stocks..should i average?
ReplyDeleteSunil you faced loss by intra day trading ? or you are holding those stocks? If your Planning to average from your current holding and for long term prospective r.com and r.power is good price to average it.
ReplyDelete@Amit, I dont think Sunil did intra-day trading. If I understood, Sunil is only holding these scrips.
ReplyDelete@Sunil, Look at your total exposure into these stocks in relation to your total portfolio. You always need to have a balanced portfolio. Donot be over-exposed to specific stocks or sectors. Keep this in mind while you do the averaging.
Also, based on your investible amount at this point of time, you can decide the quantity that you may want to purchase inorder to average the cost price.
And, last but not the least, have a long term view...