Yes Bank

Hi All !

I don't really know much about tech analysis, but from what little I know, Yes Bank is a buy for a short term of 1 to 2 weeks above today's high of 363.75 (shall we say, a trigger buy can be placed at 364 ?) and my first target would be 370.3 (that's nearly 1.75%, right ?) and if the buy is triggered my stop loss would be at 354.8. The second target can be 373.7.

Comments please ?

 

Yes bank is making high top high bottom from may 2012 practically buy should be above 390 but ur talking about very short term then u can buy @ 364.10 with stop loss of 351.10 for the target of 373.
U can see reward ratio is not even 1:1 so it is up to u weather u r comfortable with the call or not but If u ask me I will not take this call.

 

Thanks!

Thanks for the reply, Sanjay. No, I'm not planning to trade, either. I'm only observing what will eventually happen. I thought today's long-handled hammer perhaps shows a resumption of the main uptrend. Is this type of hammer called a "pin bar"?

 

I don't know about pin bar, about the hammer candle yeah u r right and it is bullish sign.

 

Its a pin bar but with the exception that the open and close is not within the pin before the pin bar.

can you pls explain more on quoted line,

 

Pin Bar

Hi Sujan, Sanjay and Shabbir,

I came across an analyst (he basically does forex and international indices with volume) who calls a pin bar, a "kangaroo tail". (I'm not sure a kangaroo has such a long tail) His name is Walter, and he says a "kangaroo tail" (for us, the pin bar) should have a candle body that is limited within one third the length of the total candle, either near the candle top or near the candle bottom. (I hope I'm making my idea clear, if not, I'm willing to explain further). He also believes like Shabbir does, that this candle body should be within the total length -Sujan, that is, length of the candle including its wicks -or in other words, length of the candle from its high to its low - and not just the length of the candle body) .

In addition, Walter also says, confirmation comes if the next day's candle closes above the close of the "kangaroo tail" or the pin bar in the case of a long, and closes below the close of the "kangaroo tail bar" in the case of a short.

Now getting back to Yes Bank, yesterday's pin bar or kangaroo tail candle's body was within the trading range of the previous day's candle (if you consider the wicks also as part of the candle) and today's close of 365.7 is above yesterday's pin bar (or should we call it kangaroo tail?) close of 361.9.
So the buy is triggered.

The only reservation I have is that we do not have too much free space to the left of the tail of the kangaroo tail as hardly 10 days ago we had a pretty loooong candle, but I guess we can't have a perfect trade set up in all respects and this is a reasonable trigger. The other question is should one trade when the profit target is a mere 1 to 1.5 % of the stock price. I guess that is an individual decision. For a beginner like me, being able to identify a winning trade, in itself is a joyful experience.

The Walter I mentioned has some free stuff on his website, his mail id is
iwalter@fxjake.com. When he isn't too busy, he reponds to emails from people like us.

 

For very short term I already told u.

For short to mid term buy @ cmp with stoploss of 340 but watch 385-390 level carefully.
After 390 it will make u rock.

 

Thanks, Sanjay. It will be helpful if you could also share the technical basis on which you make your forecasts so that beginners like me will be benefited. For instance, you suggest a buy above 390 in Yes Bank because it will be breaking out of the trend channel at that level ?

 

I think its better to avoid the stock....else there will be so many whipsaws.

Price flucates high and immedaitely and it may make down next day.

Wait till it shows some strong bullish patterns. Else as Sanjay said pls take position after it cross 390.

Its just my opinion, take others also into consideration.

Regards
Sujan

 

Sujan u r absolutely right everyone is talking about yes bank now days, u switch on the tv and u will find someone who is taking about yes bank.
I think some of major investor or broker has stock in this stock that is why there is so much conversation going on about yes bank.
My view about the stock is still same buy above 390 breakout with volumes.

 

Thanks, Sujan, no, I'm not trading on it. Especially now that it has made a huge bear engulfing with today's long red candle.

 

Dear have u read e-book, that can help u in reading chart patterns.
Also see the attachment that will also help u to understand why buy after crossing 390.

 

Thanks for the chart!

Thanks for the detailed chart. It was a great help. First I found it difficult to make out how the green line could be looked at as support. Then I realised that it was a case of resistance becoming support!

Should we consider all three red lines as resistance? Isn't it enough to take the top red line alone as resistance?

Thank you once again.

 

If u r planning to buy in future than the top redline should be consider, after crossing the top red line you may buy.
If u have already bought then u should be careful @ lower red line for profit booking/part profit.