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Is it a good buy at this price?

Discussion in 'Technical Analysis' started by mbjeh, Jan 12, 2014.

  1. mbjeh

    mbjeh New Member

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    Hi Shabbir & all friends on this board,

    I am complete novice to Tech. Analysis. Today I have for the first time done TA for ITC. Pl help me to correct where I m going wrong. You may also have a hearty laugh if I am sounding foolish. Will be glad if u cud rate my analysis on a scale of 1-10. I hv attached 1mth chrt. My investment outlook : short term.
    1. One month support at 310.25
    2. Vol. stronger than 50DMA by 101% on 10.01.14
    3. Bullish 5/20 EMA crossover.
    4. Gap up open on 10.01.14.

    Q : how to set target price?
     

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    mbjeh, Jan 12, 2014
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  2. shwetagnema

    shwetagnema Active Member

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    on seeing one month chart, it seems to be in uptrend and the channel goes till around 327. but if we see full year chart, ITC is in down trend since july. and the channel goes till 330. Also, there's a lot of resistance around 330. So, I don't expect a handsome gain in this stock at the moment. but if it crosses 330 level it can go upto 356.
    Shabbir, please correct me if i'm wrong.
     

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    shwetagnema, Jan 13, 2014
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  3. mbjeh

    mbjeh New Member

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    thanks Shweta.
     
    mbjeh, Jan 13, 2014
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  4. shabbir

    shabbir Administrator Staff Member

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    Hi and welcome to the forum

    I would say we all started there and we are all still learning and so there is nothing to laugh on this. For the first analysis I would rate this as 6 or 7. 10 being highest.

    Yes and not only one month but almost for one quarter.


    At least 1.5 times your stop loss price.

    So if you buy at 320 with stop loss of 310 then your risk is 10 Rs and so your target should be at least 15 Rs from your buy price.
     
    shabbir, Jan 13, 2014
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  5. vishuhd1

    vishuhd1 Member

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    Very nice analysis.. You have covered most of the points.. As suggested by few other people in the forum, please make it a habit to look at long term charts as well to find the right support/resistance levels..

    Coming to ITC, wait for the stock to close above 327.5 on a daily closing basis and buy for a near term target of 340… Keep aggressive SL of 322…
    Not so good ROI though..
     
    vishuhd1, Jan 14, 2014
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