Sunday, March 6, 2011

About ITC

Questions have come up on ITC. Why am I bearish on it? Here is a weekly chart of ITC. I have noted a long trading range and a subsequent breakdown from the range. This breakdown suggests that share prices have entered an intermediate downtrend. The downtrend should normally end at (1) previous support, which comes at 120, OR, (2) Some fibonacci retracement.

8 comments:

men said...

I would like to send you a chart on ITC where in a 14 year trend line is drawn, this trend line has held 149 in the recent fall, so longs with a sl of 145 should be the way out is my view for the longs. Thanks for your feedback.
Sudhin

Rahul said...

Hello Sir, accept my warm regards. This is going to be my first ever comment and could develop a conversation on your blog, though i'm a regular follower of you blog since a long time.

Observation: ITC
Your View - Bearish (Weekly)

A very interesting obseration, but could you please suggest the price action like where to go 'Short' with a basic SL ( %ile or resistance ). Because here the price action after that big splash which took ITC upto 149 odd levels zoomed quickly upto 174 which is once again above that trading range support level.

Regards,
Rahul

men said...

Today some counters were in the +ve while the rest of the market was in a steady decline, is this a right time then to exit those stocks when we have such volatile days especially if one is in profit? Could you give some nifty stocks which u feel are good for the next 1 year.
Sudhin

men said...

Dear Mr. Sudarshan,
If my stock is cheaper at 5600 than when it was at 5400 what should I do? Should I sell as the nifty may correct or is my stock price king? I am in this situation expecially on volatile days so could you please suggest what to do?
Sudhin

Gulshan said...

Sir

What else should be added to a moving average trading system to avoid false signals. Whenever I have tried to let my profits run, the market reversed its side and all profits are exhausted, if I close too early I am not satisfied with results. How it could be improved.
Please help.

Thanks

men said...

Dear Mr. Sudarshan,
When do you expect nifty to reach your target (approximately) thanks.

Sudhin

Nirav said...

Dear Sir,

As you have said that Moving Avg. is a laggin indicator as it uses past price data. So does it mean that all the indicators are ladding indicator as they use past prices? And if they are lagging indicator than which are leading indicators or what can be used as a leading indicator or to forecast the trend? Are price patterns or candelstick formation are the leading indicators?

Krishna said...

Dear Sir

Which are those potential companies listed on exchanges which will give me dividends as well as price appriciation in long run ?

How to find those companies ?

Is still ITC one among them ?

Please share.

Regards