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bank of baroda

Discussion in 'Technical Analysis' started by sachinmore08, Sep 7, 2012.

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  1. sachinmore08

    sachinmore08 New Member

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    Hi...BOB seems to be breaking down from its previous 6 month low of 615. Having said that ..i hv a doubt that does our support break down theory work here in case of BOB? bcoz previously also on 15-05-2012 it broke down from its 6 month low of 645.5 on 20-12-2011..but reversed its direction to upward very quickly. So is it possible this time it behaves same??
    Currently most of psu banks stock seems to be treading near their previous few months low..if they go further down then can we apply same theory to all of them?
     
    sachinmore08, Sep 7, 2012
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  2. shabbir

    shabbir Administrator Staff Member

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    Hi Sachin,

    The move in stock is never linear and it will always be followed by pull ups or down and so first we have to identify the trend in the stock.

    Looking at 9 months chart of BOB we see that the current trend in BOB is down.

    [​IMG]

    So we can short when the major supports is broken like 600 levels but then to maximum profits in a down trend, you can short in the peaks after reversal.

    Let me show you what I mean by short in peaks after reversal.

    740 was support for the stock when the stock price was above it but then it was not able to cross 740 once it cracked 740.

    So around July 22nd we see a big red candlestick with increase volume suggesting offload by some big players and then followed by yet another big big red candlestick clearly indicating weakness and this is where you should be shorting for maximum benefits.

    Similar things are explained in http://shabbir.in/when-short-stock/
     

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    shabbir, Sep 7, 2012
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  3. sachinmore08

    sachinmore08 New Member

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    I got very clear understanding now...thanks a ton Shabbir.. I appreciate all your efforts tat you take to educate all the newbies here !!
     
    sachinmore08, Sep 7, 2012
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  4. shabbir

    shabbir Administrator Staff Member

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    The pleasure is all mine.
     
    shabbir, Sep 7, 2012
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  5. masihpatel

    masihpatel Active Member

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    Very Knowledgable Dear Shabbir.
     
    masihpatel, Sep 7, 2012
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  6. hirenrachh

    hirenrachh Member

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    Dear shabbir

    Very nicly explained how and when to short....
    But shorting is only possible in future stocks right? I mean selling first than buying. Except intraday can we carry forward our short position in cash market?
    Pls advice.

    Regards
    Hiren
     
    hirenrachh, Aug 1, 2014
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  7. shabbir

    shabbir Administrator Staff Member

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    Exactly. You can short intraday or in futures only.
     
    shabbir, Aug 2, 2014
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