iCharts Discussions

SwingTrader · Posted: Sat May 10, 2008 11:48 pm Post subject: Gwalior Chemicals breakout

I had been posting interesting charts long time ago in the forums. I am going to try and do it again regularly (as much as possible). Here is a start. I hope this is educational to interested users.

The charts I will be posting are the sort of charts I look for to do swing/position trading. I usually keep track stocks once they breakout out of technicaly sound bases, especially when they are bucking market trend. This is shown clearly by RELATIVE STRENGTH vs a market index.

GWALCHEM had been forming a strong base after the decline, this was indicated by stronger volume on up days and weaker volume on down days. The breakout obviously was spectacular. Also note that the stock consolidated above the key 20 & 50 EMAs before the breakout.

I usually start tracking stocks after they display such moves and then initiate trades after they pullback. Obviously currently the stock is extremely overbought, so there is no point in buying now.