iCharts Discussions

[chiragbvyas]

after shorted at 336 and covered at 329.65 some interesting patterns are found in the chart of bharat forg.

though i dont know and understand what is it called but would like to short it again around 320 if go below support line then could have good profit. but could not identify stoploss.

expert opinion wel come.

Regards.

Chirag B.Vyas

[ANS_KOL]

DEAR CHIRAG,
yes 320 level is veru crucial for this stock, as that is the point from where the neckiline of a reverse head and shoulder pattern in short term chart is broken, and the stock has given a smart ralley all the way to 342.
and if one draw a downward trendline from the april top of 370, the opposite side of that broken trendline( which is broken at the same time with the break of head and shoulder neckline.) lying currently at 315-320 level.
moreover, the intermediate term moving averages are providing suport near 318-320 level. without immense selling pressure it is of least possibility that bharatforg will break down below 320.more possibility of it testing 340 level once again.
if 320 broken 300 can be tested, stoploss will be 332, where the short term upward trendline was broken.
regars.
ANS.

[bull4me]

Let me be a bit objective in the analysis...

Looks like the upside movement is gathering steam in case of Bharat Forge.
As evident on the charts from the sub 316 mark to the rally till the 348 mark has taken its course.

Now the question arises, what should be the next course of action:

1- Do not touch the unless & until the 317.95 mark is not there in cash segment.
2- Secondly, the Slow Stochastic seems to be topping up from the higher end of 80 mark which is an extremely periodic signal.
3- The failed crossover of the -DI over the +DI would lead to some sideways movement as buyers are virtually disappearing & could lead to some aggressiveness by the short side in 1-2 weeks time frame.

Wait & watch guys & sell is below 317.9 with a strict sl of 349 (the previous high).

Hope this would be helpful!!!

[bull4me]

Please do share your thoughts on the same!!!

[nsinojia]