1. DIYTechnicalAnalysis is a private community of traders and investors interested in building wealth from Indian equity market. You can become a member with a one time registration fee of ₹199. Click here to become a member

Does Mindtree posied for 645 breakouts?

Discussion in 'Technical Analysis' started by rajesh_gaikwad, Aug 23, 2016.

  1. rajesh_gaikwad

    rajesh_gaikwad Member

    Joined:
    Mar 12, 2015
    Messages:
    30
    Likes Received:
    20
    Today Mindree and other IT stocks were bullish. Mindtree seems to be interesting to me. It is forming double bottom and stock is trading around resistance level of 565.. Can we see upward trend from here ? or is it too early to predict ?

    upload_2016-8-23_16-48-50.png
     
    rajesh_gaikwad, Aug 23, 2016
    Share #1
    nirajshah and shabbir like this.
  2. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    First of all you should always use a candlestick charts because line charts miss very important data which is high and low point of the day(s).

    I agree that Infy has formed a bottom of 1010 which was the low in Nov 2015 as well and this can be considered as double bottom but still we are in the leg down of the bottom and I would like to see this being held firmly. Would like to see it being tested more than once and not breached for me to call it as a bottom.

    Now coming back to Mindtree this is the chart of Mindtree of last one year in TradingView

    MindTree-Daily.png
    Clearly 680 is rock solid resistance and though the bottom of 550 is tested twice and not breached but I would like to see more candles before assuming 550 as bottom and go long only in the leg up.

    Again 620 may act as a resistance as well.

    Hope it helps.
     
    shabbir, Aug 23, 2016
    Share #2
    nirajshah and yankeedin like this.
  3. rajesh_gaikwad

    rajesh_gaikwad Member

    Joined:
    Mar 12, 2015
    Messages:
    30
    Likes Received:
    20
    Yes true.. might wait for few candles up the level.
    It seems it will have resistance 110-120... Might break through it quickly due to double dip and if supported by strong trend.

    Appreciate for the quick reply.
     
    rajesh_gaikwad, Aug 23, 2016
    Share #3
  4. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    110?? Looks like you have mixed up some other stock with this one.
     
    shabbir, Aug 24, 2016
    Share #4
  5. rajesh_gaikwad

    rajesh_gaikwad Member

    Joined:
    Mar 12, 2015
    Messages:
    30
    Likes Received:
    20
    :) Rs. 610- 620.. apologize, typo error ...
     
    rajesh_gaikwad, Aug 25, 2016
    Share #5
  6. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    Spot on.
     
    shabbir, Aug 25, 2016
    Share #6
  7. rajesh_gaikwad

    rajesh_gaikwad Member

    Joined:
    Mar 12, 2015
    Messages:
    30
    Likes Received:
    20
    Shabbir, Very interesting stuff observed in Mindtree today. This stock dropped 13 points through out the day today and like a spring trade it reversed back 15 points up in just 15-20 minutes towards end and ended in green. Interestingly MACD was showing exactly opposite trend to price action drops from 12 pm. but couldn't realize that there will be change in direction. Am attaching couple of screenshots of Mindtree(chart and MACD)

    My question is can MACD shows reversal 2 hours in advance? or am I missing anything?
    I really missed the 15 points rally...

    upload_2016-8-25_23-34-51.png

    upload_2016-8-25_23-36-20.png
     
    rajesh_gaikwad, Aug 25, 2016
    Share #7
    nirajshah likes this.
  8. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    Could be but I don't use that as a signal for markets.

    Even there is an inside bar formation after the last candle which is a reversal pattern as well and I don't use that either.

    So there can be various pattern that can predict lot of things and you cannot take advantage of each of them. You have to confine yourself to what you can do and if MACD is something that works, follow that as well but I find price action as much more stable and works almost all the time.

    Like in case of MACD, it predicted reveral perfectly but what about just before 2PM and at times you may just stop out of that positions.

    Don't get that missed out feeling. Don't be in market with fear of missing out but learn from those misses and have a joy of missing out as well. Everybody misses out opportunities and you cannot grab all of them all the time. Just make sure when you grab them, you just nail them to perfection.
     
    shabbir, Aug 26, 2016
    Share #8
    nirajshah likes this.
  9. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    BTW price action predicted that reversal well in advance because thats a W and it would rebound from that levels due to short coverings as well as fresh buy in the leg up.
     
    shabbir, Aug 26, 2016
    Share #9
  10. Suresh_Sinha

    Suresh_Sinha Active Member

    Joined:
    May 1, 2012
    Messages:
    209
    Likes Received:
    30
    Awesome analysis and thanks for sharing this with everyone. You guys rock
     
    Suresh_Sinha, Aug 26, 2016
    Share #10
    shabbir likes this.