Sintex - Will you take or break support ?

2016年11月15日

It has been observed that SINTEX has rebounded from 75.7 levels today - thus taking the support of lower channel line.
If the selling rout in the market calms down for a while, we may see a bounce upto 81-82 levels.
If selling persists for next few days - immediate support levels are 50% Fibonacci retracement around 73.8 and a much stronger support level around 70.5-71

In case of a mild recovery in the market, it would be interesting to see which of the two levels will Sintex take support. Traders may choose to go long in a staggered manner at these two support levels.

I tried counting waves- but the patterns are too complex as of now and hence, we will wait for the pattern to evolve. For now, we will keep these price levels on the back of our mind.

I'd be happy to hear your feedback in the comments section.

Happy Trading !

Nikhil Ghodke
Indian Institute of Management, Indore (IIM-I)
Mob 7719034978

2016年11月19日

注释

Okay, Bears pushed SINTEX below the channel support mercilessly.
However, as the embedded chart shows, the 2-hour chart shows that they faced stiff competition from the Bulls who were active at the 73.8 level - exactly the same price which we identified as the second support level :)

All the shares that bears are selling are being absorbed by the bulls at this level for the past 20 trading hours (as there are 10 candles, which are perhaps not visible in this image).

The RSI has become flat near 25, while the MACD has given bullish crossover signal.

Is it wise to go LONG now?

Perhaps YES, if we get about 2 green candles on a daily basis, supported by sufficiently large volumes and deliverable quantity.

However, since NIFTY is not yet showing strong signs of a bounceback, we may choose to wait till the next support level.

Note: Always try your best to take trades at key levels, and in the direction that the overall market is moving.

Such points are very important in developing a good trading plan !

2016年11月21日

注释

SINTEX broke the two levels and is now at its crucial support zone of 70-71

I was following this stock closely for the last two days and I observed that sellers were not showing any mercy at all. Total no. of orders for short futures were almost 3 times that of buy futures (even for the Nov expiry) during past 3 days.

I wonder when all the short positions in Nov futures will be closed (leading to a small bounce)

In any case, the stock seems oversold now, but with the weakness in Nifty, its wise not go LONG as of yet. We haven't got those green candles and the EMAs and MACD is only diverging further. There is hardly any strength on the upside.