iCharts Discussions

[PrashantSarnaik]

If we look at the weekly chart of Bajaj Auto, it has given a breakout from triangle (flag) on weekly chart with increased volume. I think it has started its new up trend and target should be around Rs 2800.00 in two years time. Experts welcome to comment

[singh.ravee]

for me momentum indicators suggest beginning of fresh uptrend in bajaj auto.
Recent High = 1665. Close above it will confirm the news.
rgds

[hasten]

Holding heavy long position since 1364

[casper]

[ronypan]

[PrashantSarnaik]

[casper]

classically , a flag, [ bullish flag a we ae talking about upmove] should be like this


a strong up move with good volume, this move should be faster enough to show us almost 80-90 degree elevation....... it shows sudden buying interest of the big shots..... bcoz if u or me buy, it wont produces this kinds of move


followed by a choppy, less volume,some what decline move.... this shows that the weaker section like me and u, who bought along side the big shots, are booking profit, but there is no participation, either in buying or in selling by the big shots in this phase, thus volume is very less


then suddenly, the big shots interest is resumed and after that short span of choppy move, stock surges ahead, again with almost 80-90 degree elevation and with addition in volume, which shows that big shots are on buying spree

if u want to describe it in other simpler word, you can say, suddenly bull bought heavily, which gave us flag pole part, then power of bulls is exhausted, this generates the choppy flag part , and finally a the power of bull comes back in action, which produces the broken out part

in short, this is the psychological representation of a bullish flag, i am attaching a diagram, which i downloaded form google, im sorry, i have no time to find a "true" chart by searching all the stocks one by one, but i hope, u can guess what i want to say

moreover, i would like to tell u that i have noticed that u prefer to trade with patterns, and ur works are fairly good enough, which reminds me of my early days and makes me happy without a limit

but i would like to suggest u that every pattern, apart from its diagram, has some psychological meaning, if you look at psychological point of view, then i hope, it will give u a better understanding of the scenario which in turns, will make u a better t.a as well as a better trader,

[casper]

here is how i see bajaj-auto weekly chart

the upper lines in red color show the possible resistance, if it clears then no doubt a new upmove is what we can expect

[ronypan]

[rk_a2003]

Thanks ronypan!

For posting this excerpt from Casper writings.