iCharts Discussions

[pradeepgolfer]

Vivek
Infosys on daily is strongly up. It will show weakness only if it breaks 2721.
A stop below 2721 can be used for a short term long position.
For a position call it is preferable to put a stop below 2612.This is because one lower high and one lower low does not qualify as a turn in trend:it is only an ABC correction.
On the weekly infosys since 2009 has not broken one pivot low on the weekly chart.
I point out for all novices that a trend such as that of Infosys SHOULD BE ASSUMED TO CONTINUE and any dip should be a buying opportunity SUBJECT to the stop.This is not how much you can afford to lose but is dictated by the market.If that stop dictated by the market is not affordable you can wait and hope market is kind enough to give you a better entry.
You cannot say a previous pivot peak or previous all time high is a strong support-many times at the begining of an uptrend the stock will retrace below the peak.It has to break the higher low below that peak for the trend to change.