Wednesday, June 18, 2014

Tata Elxsi: Silent Runner

If you have been tracking the price chart of Tata Elxsi, you would have seen how it respects the technical support, resistance prices as well as patterns. For instance, around Jan-Feb'14, it made a high of around 425 and then respected it for some time. But once it broke above it, the first price it halted was a new life time high of around 660. From there, it went into a downward trending channel and corrected to an exact 38.2% retracement price of around 470. Recently it broke out of the same, which can be seen here:

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As Keynes says, “We simply do not know”.. We can never have trade with 100% surety. Willing to take only 100% sure trades means calling for self-created trouble. But yes, the behavior of a stock in the past with reference to price and chart patterns can at least make us a sense of its flavour, and we can keep an eye on it. To me, Tata Elxsi seems one such stock, a silent runner!

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