Just Dial stock opened up for trading in the month of Jun ‘13 and from thereon it has been seeing new highs month over month. We will be looking at the long term chart for it from a weekly movement perspective and then perform the analysis basis EWP to see the movement it could possibly make in future
The methodology I usually follow is to completely understand the history of movement in a particular stock and then from there try to project the future movements using EWP combined with few other technical indicators
The most prominent tools and indicators that I use to understand support and resistance levels are Fibonacci Retracement & Extension levels, Gann Fan, Super Trend, Ichimoku & Simple Averages (30, 50, 100, 150 & 200 days), divergence on stochastic & pivot points
Trading can be made relatively easy and predictable once we get the long term count. Getting the big picture and the direction of the wave count is very important before narrowing down to the trading opportunity
Usually I take the monthly/weekly chart and track the long term trend and then move to daily & hourly charts to look for trading opportunities. While the above method does not guarantee 100% trading profit, it focuses on having your losses always under your overall profits so that net-net your overall portfolio gives a positive growth
Daily Chart
The above chart clearly shows that the first 5 wave move is completely over and a correction is undergoing currently. If there is an up move it will not retrace beyond 61.8% to a high of 1320 and from thereon the final correction may take it to 1000 levels
Weekly Chart
While the first 5 movements have completed it is just now part of a bigger wave “1” and now the correction for wave “2” is underway. Once it gets over around 800 to 1000 level it should resume the major break out wave which may take it close to 2750 to 2800 levels as given below
We can review the long term chart again next year mid way to see the direction and then accordingly make wave adjustments to the long term view
Summary – If you are planning to buy then hold your urge and allow the fall to complete in next 3 months or so and enter next year at around 900 to 1000 level. For traders/investors who are already holding it around 700 to 1200 levels wait for a move up to 1320 or so and then use that opportunity to book profit
If anyone has already bought at a high of 1400 level then you have two options, if you cannot hold beyond 3 months then use the next up move to 1300 to exit in loss. If your investment view is more than 1 to 2 year time frame, then accumulate this stock at around 1000 level to lower your buy price average and see it moving to 2700 levels in next 18 months to 2 years
The methodology I usually follow is to completely understand the history of movement in a particular stock and then from there try to project the future movements using EWP combined with few other technical indicators
The most prominent tools and indicators that I use to understand support and resistance levels are Fibonacci Retracement & Extension levels, Gann Fan, Super Trend, Ichimoku & Simple Averages (30, 50, 100, 150 & 200 days), divergence on stochastic & pivot points
Trading can be made relatively easy and predictable once we get the long term count. Getting the big picture and the direction of the wave count is very important before narrowing down to the trading opportunity
Usually I take the monthly/weekly chart and track the long term trend and then move to daily & hourly charts to look for trading opportunities. While the above method does not guarantee 100% trading profit, it focuses on having your losses always under your overall profits so that net-net your overall portfolio gives a positive growth
Daily Chart
Weekly Chart
Summary – If you are planning to buy then hold your urge and allow the fall to complete in next 3 months or so and enter next year at around 900 to 1000 level. For traders/investors who are already holding it around 700 to 1200 levels wait for a move up to 1320 or so and then use that opportunity to book profit
If anyone has already bought at a high of 1400 level then you have two options, if you cannot hold beyond 3 months then use the next up move to 1300 to exit in loss. If your investment view is more than 1 to 2 year time frame, then accumulate this stock at around 1000 level to lower your buy price average and see it moving to 2700 levels in next 18 months to 2 years
We’re going to break down stock trading training for beginners so it doesn’t seem scary. One of the first things you need to do when you start out is to pick a good broker. A stock broker is going to be where you do all your business. Picking one that has large commissions and fees can be detrimental to a beginner.
ReplyDeleteAn important second step is going to be learning how to read a stock chart. The stock chart holds all of the clues to which direction the stock is going to move. Watch our ThinkOrSwim video on charts setup.
Another great resource for learning to read a chart is stockcharts.com. They have a chart school for any questions that you might have. Charts can look like Greek when you’re starting out. The more you look at a chart, the more you’ll understand it and be able to predict trends.