ShanmukhamKumarappan

ShanmukhamKumarappan

NSE:J_KBANK On the Daily Chart , a couple of things to note are : 1. Price has crossed over a resistance zone, and has now taken support on that 2. Price gapped up over that resistance, indicating very high buying pressure that had price sail over resistance 3. The gap was filled 4. There is a bounce from the resistance turned support, with a small tail...

ShanmukhamKumarappan

The chart says it all - 1. A strong trendline 2. Bearish price action at the trendline resistance 3. The moving average set pointing doing, and acting as resistance 4. The overbought 3 period RSI dipping below its 4 period EMA, as it moves down from overbought

ShanmukhamKumarappan

There are several reasons to go short here : 1. The downward trendline. The fact that price did not touch the trendline is a pain, but the trendline does support a bearish stance. 2. The purple horizontal region served as good resistance, as evidenced by the numerous wicks. You could have actually shorted there, relying purely on this price action. 3. Notice the...

ShanmukhamKumarappan Updated 

NSE:NIFTY Why I am bearish , and what I am waiting for to go short - 1. The 2 period RSI , and its 4 period EMA are very close to 100. ( You can do the same with a 3 period RSI. You'll get similar results). 2. The market has been rising non-stop for the last 7 trading days. Even 5 days of unabated rise is very rare. 3. We are hitting a resistance. 4. Drill the...

ShanmukhamKumarappan

NSE:MINDTREE I've been sitting on the sidelines and waiting for Mindtree to retrace so I can enter, and to me, now is the best opportunity. 1. The stock is in an uptrend. All the MAs on my chart are pointing up. On Friday, intraday, when price did enter the space between the last 2 MAs, there was strong buying. 2. RSI(3) is in over-sold territory. It has not...

ShanmukhamKumarappan

Its a clear swing trade . A bit of back ground here 1. The top and the sharp fall were both coming. You could have gone long either on Sept 24 or on 25, and ridden it to the dotted red line. Move a bit to the left and you will find that it has acted as a pretty strong resistance . 2. Price moved beyond the strong resistance, and stayed above it for a while. I'm...

ShanmukhamKumarappan Updated 

The index shot up very fast after a scary fall. It is ripe for a mean reversion trade. I am bearish for the following reasons : 1. The RSI(3) is seriously overbought - it is above 97, and this is unsustainable. Agreed, it was at above 90 levels even for the past 2 days, and it still zoomed up. But read on. 2. It has reached resistance - on 2 fronts actually - one...

ShanmukhamKumarappan

On the Weekly chart, there is a bullish divergence and the RSI has broken the high between the two ends of the divergence. Furthermore, price has reached a 52- W high, and has crossed its resistance. We ought to wait for a strong close, and then a pullback. At least that's when I would enter.

ShanmukhamKumarappan

On the daily,price is currently resting on the lowest extreme of the red pitchfork ( Modified Schiff ). It can be seen that on the previous 2 occasions when price tested the same support, it held and price bounced off it . My target is the meeting point of this red ( modified schiff) pitchfork and the second black ( Andrews ) pitchfork . Such convergence points...

ShanmukhamKumarappan Updated 

There is a convergence of pitchfork lines at 0.982 ( where the second higher flag is placed ). So this is where I expect the price to move. The rationale behind this line of thought stems from the fact that no less than 3 lines meet at that point. Furthermore, the first flag, which sits on the convergence of 3 lines, was the point where the price reversed.

ShanmukhamKumarappan Updated 

Price has closed below the cloud and the next cloud is red. Both of these are strong bearish signals . But only time will tell.