Below are the 5 min charts:
Friday, July 10, 2009
Falling wedges in Hindalco and RNRL
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Falling wedges in Hindalco and RNRL. I am not going fot the targets as of now in these, two but can be used for intraday. Watch out for good volumes at the break out.
Below are the 5 min charts:
Below are the 5 min charts:
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3 comments:
Doji are falling wedges bearish or bullish? i was watching both rnrl and hindalco with interest as they fell down further.Could you please comment on them .
Thanks
chokalingam,
Falling wedges are always bullish with an indicative target of the highest point of the wedge. The same is in reverse for raising widges. But, we need to trade only on the volumed breakout of the resistance/support lines which indicate the thrust developed with in the wedge, else we find wedges every where.
Both these stocks were not looking as strong as they can reach the targets but I was hoping that there will be an demand surge when the resistance line is take out conviencingly, hence mentioned they can be traded for intraday for now.
Hindalco didnt even give a break out, and RNRL simply moved out of the resistance line in its low volumed sideways move, with out a breakout. And both the stocks fell sharply along with the rest of the market towards the end of the day.
Identifying breakouts is a very important aspect of pattern trading. There is a good video by Linda Raschke on breakouts, that should be helpful.
Doji
Thanks for the nice forensic analysis doji.It really helps:-).
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