Sunday, August 4, 2013

Revisiting: Technical patterns in the making..

If you remember, we had a post with the title 'Technical Patterns in the making' exactly 2 months earlier, that included important patterns that were getting formed at that point of time. I felt it was time to revisit those patterns, and see how they have progressed so far:

1. Bank Nifty:

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We can observe here that the banking index has moved as we had anticipated, and fallen almost 3000 points from our level before 2 months.

2. ICICI Bank

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It is observed that ICICI Bank, which was forming triple top (if you zoom out) on our weekly charts before 2 months followed it, confirmed it, and is moving with the downward trend.

3. State Bank of India (SBIN):

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When we last saw the charts of SBI on this blog, it was in the trading range drawn above. But SBI, as anticipated, broke down from that range, and look at the fantastic movement it has given post that. It is important to note here that while the markets kept going up and down, SBI kept moving only in one direction: DOWN!

4. Tata Steel:

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Another classic example of a stock moving in a trading range, breaking down of it, and then the relentless downfall. While the pattern targets come somewhere near 190, getting a price of 201 from 290 in a matter of just 7 weeks makes it almost complete!

5. Yes Bank:

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Considered among the best charts in the banking sector before 2 months, this stock has collapsed beyond expectations. Having made a double top and  confirmed it, Yes Bank has reached its pattern target of 280 (285 to be precise) in less than 2 weeks. Just look at the volume in the last 3 weeks of this weekly chart. The downfall, combined with huge volumes, makes the chart the scariest of them all.

It is important to note here that i have kept the same patterns that i had drawn in the charts posted earlier, for better comparison and understanding. This is just a glimpse of the charm technical charts possess, and their potential in helping us anticipate great moves. B'coz finally, its all about riding these moves (with strict stops) and making the most of them, isn't it?

I look forward to having your views on the same..

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