V-Guard Can be a Good Play

As evident from chart 180 was good support for this stock. Recently it has given breakout with good volumes from its previous high of 205 made in Feb 2012.
So I would like to go long on this stock with stoploss at 205 on closing basis & play for target of 240-250 levels which is all time high price for this stock.

 

how can we arrive on a next resistance for this stock? sorry it is a beginner question perhaps...

should we use Fibonacci or refer an yearly chart...?

Sudhir

 

Hi shabbir
I agree with you . it has given clear breakout.but i have one question, How to identify such stocks quickly?
I have to check the charts of all stocks and apply criteria,
csnatu

 

Hello shabbir,
Can we have this sock for short/medium term investment say for 1-3 months horizon?
what I analyse that EMA20 is well above the EMA80 and it has got support at 215. Please correct me if I am wrong.thx
Peace be upon you.

 

I am sill new to technical analysis but through my current understanding I can think of 2 options as below -

Option1 - In my opinion one should wait to break out actually happens @235-240 level which is its all time high and ride the profit with stop loss at 205.

Option 2 - MACD currently has formed wide divergence..also price moving along Bollinger Upper band it clearly indicats bullish trend is still intact. So in case it does not break its all time high price then looking at bullish trend one should buy on dips (at oversold region) and sell at overbought region.

What say?

 

Nice spotted and though you don't share tips, I profit more from your tips than those tips providers one.

 

Can you please also hv a look at Lanco Inratech ? I hv been tracking this script for 1 week as charts were looking attractive i could hv made money here but.. could not able to decide if should buy. frankly speaking not feeling that confident to initiate a trade. Also on V-Gaurd ..after reading ur post..i was watching it since today morning and saw it gained around 6 % today..I could have bought it early in morning ..but again due to dilemma could not initiate trade. dilemma was that it already had reached very close to its all time high was not sure if it is good time....not sure why am i lacking confidence in trading technically or do i need any paradigm shift in my thinking style or am being very defensive? pls guide..

 

Great jump today,but I could not able to invest

 

Now the CMA is 241 (high 244) ,pl share ur analysis. how can we conclude after looking six monthly chart. we have to see the resistance level and tops in the past.

 

Sold @250 at BSE today. Made a decent profit and am happy with Shabbir's 'tip'

 

Yup, agree and hence the quotes on the word tip. . Btw, I now rarely follow any tips and your take on V-guard helped me do my own research and buy the stock. I request you do give more pattern ideas if possible for some of us who rarely have time to research deeply and someone who is not yet actively involved in market. Thanks for all your help!

 

Shabbir you will be amazed to know that I bought V-guard @217 on 11/06/2012 and sold it @236.50 on 13/06/12. And all this was possible because of the knowledge of technical analysis.However I could have earned more money if I would have waited for more days when it touched 250.I believe in long term this stock can touch 275-280 but I don't want to wait whenever I get 10% in short term as was the case here.This is my cardinal rule now a days to beat volatility and uncertain Indian Policy makers. Last year I was earning 15% in Thomas cook within 2 days of buying but didn't book profit and after 5months I sold it with about 20% loss.So now to me if a stock is giving me 5 to 10% profit within a week I book profit at least 80%.