Technical Predictions for 27th Oct. October 26, 2014 by Ashok Goel·0 Comment NIFTY For four consecutive days Nifty made opening after a gap and closed higher, Nifty is trading above its all moving averages, with moderate volumes. These series of gaps are quite rare and bullish. Such gaps and higher closing are indication of sharp and long term bullishness. BUY with a Stop Loss of 7970 and a target of 8070. ACC(1483.55) The scrip has been making gap up opening continuosly from last five days and also making higher close. This is a very bullish pattern, It has also made a Inverse Head and Shoulder pattern, another bullish pattern, BUY with a Stop Loss of 1473 and a target of 1510. BHEL(240.40) The resistance level of this scrip is 243.50.This is the third time that it has face resistance at this level. If BHEL trades above 244 for a reasonable period, then BUY this scrip with a Stop Loss of 236 and a target of 249. BPCL(691.10) The scrip has made a “Descent Block” pattern on Japanese Candlesticks. The First day of the pattern is a long black day. The Second day is along black day and closes below the first day”s close. The strength of the downtrend attracts new bears, and the third day is another black day that closes below the close of the previous day. With three consecutive black days in a downtrend, the bears are probably becoming complacent. But, upon closer examination, the Descent Block Pattern shows that the current downtrend is actually exhibiting signs of weaknwess. First, the body range of each day is less than that of the preceeding day. Second, each day opens within the prior day”s body. While the second and third days are making lower closes, the distance between the closes is most likely shrinking . This means that the strength of the downtrend is deteriorating and shorts should protect themselves. BUY with a Stop Loss of 680 and a target of 708. bpcl22oct L&T(1558.45) Like Nifty, this scrip has also been making consecutively five days gap up opening and a higher closing. It has made a Inverse Head and Shoulder Pattern, which is also a bullish pattern. These patterns are indication of medium to long term bullishness. The volumes are moderate. BUY with Stop Loss of 1540 and a target of 1590 NTPC(146.70) NTPC has made Pattern similar to “Side by Side Black Lines” and “Rest After Battle” patterns. Both these patterns on Japanese Candlesticks are bullish pattern . This pattern was created to capture that certain type of up trend that begins with a long white day, followed by a number of days of lateral movement, followed by another white day, to be followed again by a number of days of lateral movement. This type of ” Stair Step” up trend can last anywhere from three to eight weeks. At some point , the momentum of the uptrend increases, and you will see consecutive black days, until the uptrend finally becomes overextended. BUY with a Stop Loss of 141 and a target of 154. Read more a2analysts/
Posted on: Sun, 26 Oct 2014 14:56:51 +0000
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