THE TWO ANALYTICAL MODEL TO DETERMINE WHAT STOCK TO BUY

There are two basic methodologies investors rely upon when the objective of the analysis is to determine what stock to buy and at what price, :

1.     Fundamental analysis maintains that markets may incorrectly price a security in the short run but that the "correct" price will eventually be reached. Profits can be made by purchasing the wrongly priced security and then waiting for the market to recognize its "mistake" and re price the security.

Ø  Fundamental analysis includes:

·        Economic analysis

·        Industry analysis

·        Company analysis

2. Technical analysis maintains that all information is reflected already in the price of a security. Technical analysts look at trends and believe that sentiment changes predate and predict trend changes. Investors' emotional responses to price movements lead to recognizable price chart patterns. Technical analysts also evaluate historical trends to predict future price movement.

Investors can use one or both of these complementary methods for stock picking. For example, many fundamental investors use technical for deciding entry and exit points. Similarly, a large proportion of technical investors use fundamentals to limit their universe of possible stock to "good" companies.

                   The choice of stock analysis is determined by the investor's belief in the different paradigms for "how the stock market works

KEEP AN EYE ON LUPIN(PHARMA STOCKS) COMING WEEK

BUY LUPIN ABOVE 1009 TGT 1060/1090 SL 955

FOR LIVE TRADING LEVELS WHATS UP ME

ON 09039542248

Primary trend of the SUNTV is bearish and now stock is trading in short term recovery phase, it is likely to continue the upside move in near term with the crossing of the resistance level of 1009 above 22EMA. Then it will forming continuation pattern in short term charts, it is likely to continue the positive movement with the breakout of the pattern at the levels of 1009 ; Then Overall trend of the stock is bullish. If the stock is managing to trade above its 22 days moving averages with the RSI of 48, one may expect the targets of 1060/1090 in the stock if it manages to sustain above the immediate support level of 955. 55 EMA can see as a strong resistance at 770. it is likely to experience fresh buying with the crossing of 55 EMA , where one may keep the targets of 1100,1200 in the stock with the stop loss of 955.

DAILY CHART FOR LUPIN:

EYE ON SUNTV ; ABOVE 200 EMA

  Continue to hold CEATLTD buy call given in our last post

BUY SUNTV ABOVE 715 TGT 730/740 SL 700

FOR LIVE TRADING LEVELS WHATS UP ME

ON 09039542248

Primary trend of the SUNTV  is bearish and now stock is trading in short term recovery phase, it is likely to continue the upside move in near term with the crossing of the resistance level of 720 at 200 EMA. Then it will forming continuation pattern in short term charts, it is likely to continue the positive movement with the breakout of the pattern at the levels of 720 ; Then Overall trend of the stock is bullish. If the stock is managing to trade above its 200 days moving averages with the RSI of 40, one may expect the targets of 730/750 in the stock if it manages to sustain above the immediate support level of 700. 200 EMA can see as a strong resistance at 720. it is likely to experience fresh buying with the crossing of 200 EMA , where one may keep the targets of 750,760 in the stock with the stop loss of 700.

DAILY CHART FOR SUNTV:

CEATLTD IS IN SHORT TERM RECOVERY PHASE

BUY  CEATLTD ABOVE 1650 TGT 1700/1760 SL 1600

Primary trend of the CEATLTD  is bearish After showing correction from the higher level, now stock is trading in short term recovery phase, it is likely to continue the upside move in near term with the crossing of the resistance level of 1650 as the stock is managing to sustain above the level of 1650. One may get the targets of 1700,1800 in the stock with the stop loss of 1600.Overall trend of the stock is bullish. if the stock is managing to trade above its RSI of 40.And wockpharma manages to sustain above the immediate support level of 1515 at 200 EMA. 22 &55 EMA can see as a strong resistance at 1562. It is likely to experience fresh buying with the crossing of 22 EMA , where one may keep the targets of 1800-1850 in the stock with the stop loss of 1515.

DAILY CHART FOR CEATLTD: 

 

HOW TO EFFECTIVELY SET STOP-LOSS POINTS

Setting stop-loss and take-profit points is often done using technical analysis, but fundamental analysis can also play a key role in timing. For example, if a trader is holding a stock ahead of earnings as excitement builds, he or she may want to sell before the news hits the market if expectations have become too high, regardless of whether the take-profit price was hit.       

                  Moving averages represent the most popular way to set these points, as they are easy to calculate and widely tracked by the market. Key moving averages include the five-, nine-, 20-, 50-, 100- and 200-day averages. These are best set by applying them to a stock's chart and determining whether the stock price has reacted to them in the past as either a support or resistance level. Another great way to place stop-loss or take-profit levels is on support or resistance trendlines. These can be drawn by connecting previous highs or lows that occurred on significant, above-average volume. Just like moving averages, the key is determining levels at which the price reacts to the trendlines, and of course, with high volume.

When setting these points, here are some key considerations:

• Use longer-term moving averages for more volatile stocks to reduce the chance that a meaningless price swing will trigger a stop-loss order to be executed.

• Adjust the moving averages to match target price ranges; for example, longer targets should use larger moving averages to reduce the number of signals generated.

• Stop losses should not be closer than 1.5-times the current high-to-low range (volatility), as it is too likely to get executed without reason.

• Adjust the stop loss according to the market's volatility; if the stock price isn't moving too much, then the stop-loss points can be tightened.

• Use known fundamental events, such as earnings releases, as key time periods to be in or out of a trade as volatility and uncertainty can rise.

LT UPTREND EXPECTED IF BULLS IN ACTION NEXT WEEK

buy LT above 1140 TGT 1160/1190 SL 1110

FOR LIVE TRADING LEVELS WHATS UP ME

ON 09039542248

TECHNICAL VIEW:  After showing correction from the higher level, now LT is trading in short term recovery phase, it is likely to continue the upside move in near term with the crossing of the resistance level of 1150 as the stock is managing to sustain above the level of 1150.  It is likely to continue the positive movement with the breakout of the pattern at the levels of 1157. 22 and 55 days moving averages seen as resistance  level with the RSI of 40.  After breakout, One may get the targets of 1170,1200 in the stock with the stop loss of 1110. Primary trend of the LT is bullish. Strong Support level seen on daily chart at 1120 AT 200 EMA .

DAILY CHART FOR STAR:

RULES FOR FUTURE TRADING

     
      Continue to hold wockpharma buy call given in our last post
     
      1. Stay out of trouble, your first loss is your smallest loss. 

2. Analyze your losses.
3. Survive! In futures trading, the ones who stay around long enough to be there when those "Big Moves" come along are often successful. 

4. If you are just getting into the markets, be a small trader for at least a year, and then analyze your good trades and your bad ones.

5. A speculator should have enough excess margins in his account to provide staying power so that he can participate in big moves.

6.Take windfall profits (profits that have no sound reasons for occurring).

7.Periodically redefine the kind of capital you have in the markets.
8.Do not use the markets to feed your need for excitement.
9.Always use Stop Loss

10.Intraday trading should be done without any ego.
Flexibility and discipline are key for a successful trader.

11.Do not be afraid to be a sheep. Do not overtrade.
12. Take a position only when you know your profit goal and know when to stop if the market goes against you.
13. Use technical signals (charts) to maintain discipline - a vast majority of traders are not emotionally equipped to stay disciplined without some technical tools

BULLISH MORNING STAR IN WOCKPHARMA

buy 4 lots WOCKPHARMA above 570 TGT 585/610 SL 550

Primary trend of the WOCKPHARMA  is bearish and after formed a bullish morning star and pattern has been confirmed, it is forming continuation pattern in short term charts, it is likely to continue the positive movement with the breakout of the levels of 570 ; Overall trend of the stock is bullish and after experiencing correction from the higher level. if the stock is managing to trade above its RSI of 40, one may expect the targets of 585/610. if wockpharma manages to sustain above the immediate support level of 550. 22 EMA can see as a strong resistance at 596. it is likely to experience fresh buying with the crossing of 22 EMA , where one may keep the targets of 610,620 in the stock with the stop loss of 550.

CAndlesticker VIEW: BULLISH MORNING STAR

On the daily charts, WOCKPHARMA has formed a bullish morning star which is a bullish reversal pattern and pattern has been confirmed today. A downtrend is in progress and the black candlestick confirms the continuation of the downtrend.. However, the tight price action on the second day between the open and the close shows indecision. The third and fourth day is a white body that moves into the first day’s black body. A significant bullish trend has occurred.

DAILY CHART FOR WOCKPHARMA: