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TATACHEM - Short Trade Opportunity

Discussion in 'Technical Analysis' started by kaisarimam96, Sep 16, 2012.

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  1. kaisarimam96

    kaisarimam96 Member

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    Dear Shabbir sir,

    I see short trade opportunity in TATACHEM due to below reason

    (1) - Stock is in downward trend since last 6 months.
    (2) - It has made false break above resistance level of 325. It has made shooting star at that level.

    (3) - Stock has good support at 300 level and has bounced 3 times from there still not able to break above 325 so that is still strong resistance.

    (4) - Nifty may decline on Monday trade due to uncertainty in Retail FDI issue so this short trade is in line with overall trend of market.

    (5)- As per my personal observation EMA-200 is the best indicator to trade. In this chart you can see stock is taking resistance from 200EMA and again it may fall to 305.

    (5) Target for this trade is 305 and stop loss is 326.

    Please offer your views / analysis on this short trade as i trade in futures section only.
     

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    Last edited: Sep 16, 2012
    kaisarimam96, Sep 16, 2012
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  2. shabbir

    shabbir Administrator Staff Member

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    Your levels are perfect but EMA-200 is too longer EMA for any indication, either is should be SMA-200 or EMA-20
     
    shabbir, Sep 16, 2012
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