iCharts Discussions

[ipakrashi]

Hi guys

A look at the LT charts reveal a "DESCENDING TRIANGLE" formation in recent days denoting that there is weakness in the stock.

However judging the recent trends a level of 1385 is the final frontier. Support is expected to creep in around 1375. However if it a breach of that then we are in for trouble.

The upside is capped at 1640-1650 levels.

Trade with caution and watch out for the above mentioned Support and Resistance levels of 1375 and 1640 respectively

Regards
Indranil

[Class]

Hi Indranil,
Nice chart. Is this the company that originally was interested in taking a stake in Satyam?

You don't have volume, but there is a beautiful W formation in early March matched with a definite MACD crossover. Getting in then at around the 600 mark would have been a nice earner eh?

The decending W formation you have circled shows the lows decending which match with the MACD hystogram troughs decending. Bearish as you say. Some may say that the pattern identified may be a decending Flag or even a simple downward channel. Whatever it is I think you are right that it is bearish in the short term, probably profit taking, although the experts are talking of a pullback in the markets overall. May make for an entry point.

Do you know how this company is doing fundamentally? Have you some idea of the longterm price upside based on their business model?

Thanks for the charts, you have some great observations.
All the best,
Class.