Bearish ABCD in DLF - 10th sep 09

DLF Chart - 15 min:

DLF formed a Bearish ABCD pattern and reached its target. Posting this for study purpose.

Few Scrips of interest - 07 sep 09

List of the scrips which took support from the Fibonacci levels on last Friday. Posting this for study purpose.

• RelCap took support from 61.8% it may move up to 944.
• Relinfra took support from 61.8% it may move up to 1215.
• DLF took support from 50%, it has a good chances of moving up to 455/488/518 levels.
• GMR Infra took support from 61.8% and it may move up to 152 levels.
• HDIL took support from 61.8% and it may move up to 349 levels.
• HCC took support from 78.6% and it may move up to 117 levels.

Theory is after formation of "ABC" one can trade towards the target "D" in ABCD pattern. But here the levels are involved with only one Fibonacci level, the probability of reaching the targets is less.

Most of them showed bullishness from the Fibonacci levels, and volumes after the reversal are also good.

Flag and Pole in DLF 1st Sept 09

Update at 12:09 PM:

Exited 75% and keeping trailing stop loss for remaining holdings.

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Update at 11:05 AM:

It reached the first target, second target can be 445.

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Update at 10:14 AM:

DLF opened above the resistance, first target can be 437. One may buy on dips.

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DLF Intraday Chart - 5 mins:

DLF formed a Flag and Pole pattern just below the resistance. If it breaks through the resistance then it may gain Rs.25 more.

DLF Technical Analysis - 9th July 2009

DLF has broken the support of 305 levels decisively today. As it broke an important support zone further it may show more weakness. Next support zone is at between 270 to 238 levels marked in the chart below. Tomorrow we may see some bounce back, however, I expect it to touch 270 levels in next few days.

Below is the daily chart of DLF:

DLF - Longer Term Analysis

DLF - Below is the Daily chart:

DLF has seen an exceptionally high volumes at the bottom and also while moving up. This indicates a strong accumulation. The two support lines drawn horizontally from previous peaks and the gap created on 18th May's historical up move created a strong base for support. Now, it formed a Cup and Handle pattern, posted earlier, showing good consolidation. DLF could be bought at the breaking out of this Cup and Handle Pattern and could be held for a longer term.

Update: Did not give a break out.

Cup and Handle in DLF,L&T and Nifty Futures

After the dramatic move of 18th May, some of the scrips slided down & consolidated with low volumes and then slowly moved up forming the rounding pattern. From past 2 days, consolidation can be seen with low volumes, which is acting like handle to the rounding bottom (Cup). Break out from the handle resistance line with good volumes will give confirmation to the pattern. Stop loss should be at the handle low - filter.

About Cup and Handle Patterns: Cup and Handle or Rounding Bottom acts as a good accumulation pattern. The gradual down move of the price with decreasing volumes shows that the selling pressure is reducing. At the center, the price is lowest with low volumes as the supply and demand are balanced. As the demand increases price slowly moves up with the volumes expanding. At the peak again high volumes show the climatic demand. If the supply increases dramatically and the prices are coming down with high volumes then this may form as double top pattern. If the prices are moving down slowly or consolidating sideways with low volumes then it indicates that supply is diminishing.

When the fresh buying starts volumes increases significantly and the new highs are made, as the sellers at the previous top close there positions and new buyers coming in, causing the price to zoom up. This pattern works as a continuation as well as reversal (inverted cup and handle) and has a very good risk-reward ratio.

DLF: Price pattern is good with bowl shaped volumes support. Below is the DLF chart

L&T: Price pattern is good with bowl shaped volumes support. Below is the L&T chart

Nifty Futures: Price pattern is good, but the volumes are not increasing in the up move. Most of the times, Nifty up move is necessary for the success of the others scrips. Below is the Nifty futures 15 min chart.

There are some more scrips which formed Cup and Handle Pattern, please post if any one find them and like to discuss.