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

State Trading Corporation Ltd.

Discussion in 'Technical Analysis' started by harshjoshi, Sep 12, 2012.

  1. harshjoshi

    harshjoshi New Member

    Joined:
    Sep 11, 2012
    Messages:
    8
    Likes Received:
    0
    Occupation:
    self employed
    Price taking support at the lower band of the range and Long term RSI giving buy signal.

    The long term downtrend of this stock from the high of January 2010 (561.80) seems to have found its feet at the lows of December 2011 (111.10), after that this stock has seen a steep bounce in January-February 2012 but since
    then has consolidated from last six months in the range of 230-300. The stock has recently bounced back taking support at the lower band of the range and is
    likely to test the upper boundary of the range around 300 levels in the coming week

    I suggest to take long position at CMP with a strict SL of 260.
     
    harshjoshi, Sep 12, 2012
    Share #1
  2. harshjoshi

    harshjoshi New Member

    Joined:
    Sep 11, 2012
    Messages:
    8
    Likes Received:
    0
    Occupation:
    self employed
    Please share views on the same, is this the right strategy to invest in this scrip?
     
    harshjoshi, Sep 12, 2012
    Share #2
  3. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    We thought it was suggestion and not asking for view. My view is it should be avoided unless it can cross the the resistance level of 300 and then 340 which I think is really tough for this stock.

    Trading a long term down trend does mean we need to be very strict in stop loss.
     
    shabbir, Sep 12, 2012
    Share #3
  4. harshjoshi

    harshjoshi New Member

    Joined:
    Sep 11, 2012
    Messages:
    8
    Likes Received:
    0
    Occupation:
    self employed
    Actually in my observation I noted that on the weekly chart of STC, 52 weeks EMA has acted as a strong support during the recent consolidation.

    Also in last week’s trade, on the daily chart, the 13 days EMA has given a bullish crossover over its 21 and 50 days EMA, signifying positive momentum in the near term.
     
    harshjoshi, Sep 12, 2012
    Share #4
  5. sujan4bw

    sujan4bw Member

    Joined:
    Jun 12, 2012
    Messages:
    557
    Likes Received:
    18
    It is in trading in range since from March 2012. We can think of taking position after breakout or breakdown of the range.

    Please see attached printscreen.
     

    Attached Files:

    • ST.jpg
      ST.jpg
      File size:
      87.1 KB
      Views:
      160
    sujan4bw, Sep 12, 2012
    Share #5
  6. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    Completely agree with you on this.
     
    shabbir, Sep 12, 2012
    Share #6
  7. harshjoshi

    harshjoshi New Member

    Joined:
    Sep 11, 2012
    Messages:
    8
    Likes Received:
    0
    Occupation:
    self employed
    well said, today the said SL triggered, :(
     
    harshjoshi, Sep 18, 2012
    Share #7