RSI Divergence Analysis showing Market will Fall

Pyramiding - Current Opportunities

Don't forget to watch DISH TV

HEROMOTORS - Looking Bullish !!!

ABAN Off-Shore Looking Extremely Bullish

How to identify a Stock before Momentum Starts

Price Action Analysis on a Small Cap Stock - Looking Bullish

Gold will hit 70k !!!

Diamond Pattern in Petronet LNG - Very Bullish

HDFC AMC near Support Zone and Forming Ascending Triangle

3 Blue-Chip Stocks available @Discount !!!

Price Action based Analysis on TCS, TATASTEEL and HINDUNILEVER

 12-Nov-2021 EoD Analysis

In our endeavor through Discover Stock, we have been providing you information about stocks which are actually being traded at the bottom ranges. Our recommended stocks were either just broken out of the previous resistance or in the verge of a break out near the bottom zone. 

We keep suggesting the readers to keep watch on these recommended stocks and take position only when it is at low risk zone for a big reward. 

Since last one year or so, we have seen almost all the blue-chip stocks have already recovered from their respective Covid Pandemic crash lows and they not only have broken their Pre-Covid highs but also have been trading in their all time high regions.

In such scenarios, no blue chip stocks were discovered at low price. However, based on Pure Price action and Technical Analysis, we have fished out 3 NIFTY 50 Stocks, which are available at low price.

Although these stocks are currently trading at almost near their double from the last year price, still the said stocks were considered here as they are currently trading at their support regions.  

The support and resistance concept has been discussed in detail, in a video for which the link has been provided below. Readers are requested to go through the video to get an understanding on support and resistance concept in stock market charts.

Support & Resistance Concept

Technique of drawing of Support and Resistance Lines is also mentioned in the said video. Normally people draw support lines by connecting the low points in a bar chart and resistances are generally drawn on high points. However, when we plan for a long term investment,  these lines should be drawn slightly in a different way. Instead of using the Candle Charts, it should be drawn on Line Charts for more accuracy. More importantly, the lines should be drawn on daily line charts connecting the prices. After drawing the lines, charts can be converted to Candle Stick charts, where exact support and resistance levels can be marked.

The stock which are traded at support may be short listed for buying. Always there should be more than one reason when we are thinking to go long on any stock. Convergence of more than one support or resistance line are more powerful and effective than only a single support or resistance line. Further, in case the chart forms any of the bullish patterns, then also it can be considered in the watch list. 

In our analysis, we have found out three such blue-chip stocks which are having multiple confirmations at their support levels. The name of the stocks which are being discussed as below:

1. TCS

2. TATASTEEL

3. HINDUNILEVER (HUL)

The users are invited to go through the video link where they can get a proper understanding behind the selections of the above stocks.

In case you like this analysis, please share it with your peers so that it can also benefit others. 

Thank for your time friends.

 

Technical Analysis - Formation of Bullish Patterns

Technical Analysis 

Formation of Bullish Patterns

• PARAGMILK

Technical Analysis

• As per technical analysis, Parag Milk is currently forming a Reverse Head and Shoulder Pattern. 
• Reverse Head and Shoulder pattern is considered as highly bullish.
• After the formation of the Reverse Head and Shoulder Pattern, the price is currently in the verge of a break out.
• In case it breaks out from the shoulder line i.e. the resistance line formed since Aug-2019 and is well supported by Volume Action, then its bull run is expected to start.
• In case it breaks out from the resistance level, it may become a multi-bagger in short time period.
• Looking to the support line, it indicates that the price is respecting the support trend line and trading just above the support line. Hence the risk is very limited, where as it is likely to give a good reward at the upper region.
• The initial target line has been indicated in the above picture.

• MIRZA INTERNATIONAL

Technical Analysis

• As per technical analysis, Mirza International has formed a Reverse Head and Shoulder Pattern. 
• Reverse Head and Shoulder pattern is considered as highly bullish.
• After the formation of the Reverse Head and Shoulder Pattern, the price has recently broken out from the resistance shoulder line which was formed since Jun-2019.
• After its break out from resistance zone, the price is moving up and is also well supported by Volume Action.
• It may become a multi-bagger in short time period and may hit the target indicated in the above chart.

For getting idea on more such stock, which are forming various bullish patterns, we invite the readers to watch the below videos, which are likely to help improve your knowledge on Technical Analysis and also it will help you discover the actual multi-bagger stocks at bottom level.

• Cup and Handle Pattern

• Reverse Head and Shoulder Pattern

• CEREBRAINT

Technical Analysis

• As per technical analysis, CEREBRAINT has formed a Reverse Head and Shoulder Pattern. 
• Reverse Head and Shoulder pattern is considered as highly bullish.
• After the formation of the Reverse Head and Shoulder Pattern, the price is trying to break out from the resistance zone which has been forming since 2018.
• In case it breaks out from the resistance level, it may become a multi-bagger in short time period.
• Looking to the support line, it indicates that the price is respecting the support trend line and trading just above the support line. Hence the risk is very limited, where as it is likely to give a good reward at the upper region.
• The initial target line has been indicated in the above picture.

If you like this analysis, please share this with your peers so that we can get motivation out of it which will help us to make more such meaningful contents in future.

Thank You for your Valuable Time.

3 Interesting Charts - Based on Price Action Analysis

Entertainment, Hospitality and Garment Sector in the Radar

In our past blog dated 11-Sep-2021 (Hospitality and Textile Sector to grow multi-fold in 2021) we had mentioned about the easing out of Pandemic Led Restrictions and its impact on above sectors.

In continuation of that, we have found out 3 stocks which are looking highly bullish on technical charts. 

We have carried out our Price Action analysis on Daily, Weekly and Monthly Charts of these 3 stocks and explained on why these stocks look bullish and have suggested to keep a track on price movement of these stocks for some days or some weeks from now.

Stocks to be watched:

1. UFO Moviez India 
2. The Byke Hospitality
3. Mirza International

The Technical Monthly Charts are placed below for reference of the readers. The detailed explanation on the daily, weekly and monthly charts are also placed in the below video.

Please go through the entire video to find out the price action analysis on these charts.

1. UFO Movie India

2. The Byke Hospitality

3. Mirza International

Please watch detailed explanation of these charts in the below video to understand the price action analysis on the charts.

Thanks you Very Much for your time.

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Price Action based Analysis to Discover new Stocks for Investment

PRICE ACTION ANALYSIS FOR INVESTMENT

What is Price Action

Price Action is the movement of a stock price, plotted for a certain duration of time, out of which, the trend of the stock movement can ideally be extrapolated.

There are three metrics used in Price Action. They are:

• Price
• Pattern
• Volume

All other parameters like Trend Line, Support, Resistance, Break Out, Break Down, etc. are derived from these metrics of Price Action.

Whether Price Action Analysis is useful for Investment

Yes, the Price Action Analysis can be used for all types of trading and investments.

Investors who are into Technical Analysis, normally look for Bullish Patterns formed by the Price Movement. Some of the Bullish Patterns are:

• Reverse Head and Shoulder
• Cup and Handle 
• W Pattern
• V Pattern
• Double Bottom 
• Pull-back Buy

Whenever any stock forms certain pattern, traders and investors look for a right location and time, from where they can take their position so that the risk is minimum and reward is more. This type of analysis is called as Price Action analysis.

Normally, new traders/investors when take trade they go for catching the stock which is already run away from its break-out level. Taking position at such area would be risk-prone as Stop Loss range are high at that location. 

Actually, when Stock Price is forming any pattern or moving inside a range and it tries to break out from that pattern or range, then Price action has to be looked into. However, when stock price flies away from the break-out level then Price Action results into Momentum. For Momentum there are indicators used in Stock market charts like RSI, Bollinger Band, etc. 

Ideally retail traders identify the trades by looking into the indicators. Since Indicators are derived from the Price, so by the time they take the trade it is already late. So retail traders takes the trade when the momentum is already started on the stock prices. 

Hence, if a stock is identified through Price Action analysis, it gives more value to the investment. 

We had posted in our previous blogs like VIMTALABS, SUBROS, based on such Price Action analysis, which, we feel would be useful for traders to gain knowledge on price action concept.

We invite readers to go through the below videos to get a better understanding on Price Action Analysis.

If you like this type of analysis please subscribe this channel and share with your friends and peers.

See you in the next analysis.