Petronet Lng-201,

Petronet LNG has made an all time high today, which is a good indication to buy. It has made an all time high after a gap of 2 years and also volumes are increasing indicating that interest is coming into the stock after some time. We can assume that the stock has all chances of moving up from current levels. Stop loss - Rs.165/-

M.Mahiidar
Enjoying Life
Trend is Friend.

Gold in USD terms is an interesting one at this point of time. The above is the monthly chart of gold from the lows of 2001. Gold has broken below the trend line of 13 years( a fibonacci) which is a huge sign of weakness in gold and we can expect a healthy down fall in gold in coming weeks or months unless and other wise gold rises above trend line. The 100 month EMA is at 1173 which has been offering support to gold for last 15 months this time also in might offer the same but as this is the third attempt we can expect it to be taken out. Any break of same may prove to be catastrophe for gold as it has all possible chances of moving below USD1000 so we have to keep a close watch on the same. So brace for bear activity in Gold.

M.Mahiidar

Enjoying Life

Trend is Friend.

 

All might be wondering, when i would be giving the rules of the flow technique. From this week onwards i would furnish the rules under the label flow rules.
First and fore most is the identification of pivot highs(PH) and Pivot Lows(PL), once this is perfected nearly 60-70% of the learning would be over. This has to be mastered if we have to master the flow.

One point to be note is that there would be alternation between Pivot highs and lows. Pivot high would follow pivot low and and vice versa. But there would be now two consecutive PHs or PLs 

Rules for identification of Pivots High

1. When the subsequent bar moves below the low of the previous bar - then we have to identify the pivot high.
2. Pivot High(PH) would be the highest point after the pivot low. 

Rules for identification of Pivots Lows

1. When the subsequent bar moves above the high of the previous bar - then we have to identify the pivot Low.
2. Pivot Low (PL) would be the lowest point after the pivot low. 

i have explained the same in the chart below.

for clarification of same you can post in comments which i would reply.

M.Mahiidar
Enjoying Life
Trend is Friend.

For Friday we have bought forward on long with SAR at 16035. The bnf opened on weak note and and continued to move down and recovered slightly at the end indicating indecisiveness of the market in short term. As no new high was made we did not do any thing but just watching the market. Carried forward on long with SAR at 16035.

M.Mahiidar
Enjoying Life
Trend is Friend.

Weekly technical Analysis for week ended 19^th September 2014

During the week there appears to be a tough fight between bulls and bears in first two days bears were in control and next three days the bulls were in control. During the wee Nifty opened at 8070 made a low of 7925 and thereafter recovered with vengeance and made a high or 8160 and closed at 8121. For the week the index closed with green colour indicating that the close is higher that open and also this week’s close is higher than that of the last weeks indicating the bulls are still in control of the market as of now. The weekly candle has long tail and has formed what appears to be a hammer indicating that the bears have tried hard to take the market down but bulls have give a tough fight and were successful in taking the market up. So till the low of 7925 is violated in the coming week we can see market drifting up only. So till that happens we can expect the market to slowly and steadily inch upwards.

As far as Elliott wave is concerned nifty did not go below the low of the 4^th wave at 7855 which I have indicated in my last weeks up date. This indicates strength of the bulls. This week also we have to see whether this would be violated if this is taken out nifty has all the chances of moving towards 7540  but as of now it appears far off. But nothing can be ruled out. As of now it appears that we might have completed wave-1 and wave-2 of wave – 3 of wave-5 of larger wave-3. It is an assumption as of now the movement in the coming week has the possible chances of altering the structure. Till then we have to make this assumption. If wave-2 has completed at 7925 then we can easily see new high in the coming weeks easily. So we have to wait and watch in the coming weeks.

 Now we look at the probable targets as per elliott assuming that the wave-2 has ended at 7925. Wave -1 is of length 640 points so we can safely assume that the wave-3 would at-least be equal to that wave so we have a target of min 640 points from 7925 giving a target of 8565. But we have to wait and see whether the structure assumed is correct or not let the market give the direction. As the market moves the wave structure also evolves and suitable chances would be made to align with the wave structure.

M.Mahiidar

Enjoying Life

Trend is Friend.

September 21, 2014 5:25 PM

Allahabad Bank-125/-

Allahabad bank has moved above 200 week EMA in may june 2014 and there after corrected for three months and came down and move below 200 week EMA and now moved above it indicating strength of the bulls. Its a perfect technical set up and has chances of making a new 52 week high in weeks to come. So it becomes a buy with Stop loss at 110. any close below 110 would indicated weakness on weekly charts.

M.Mahiidar

Enjoying Life

Trend is Friend.

We carried forward one long with SAR at 1603Today BNF opened on a weak below yesterdays low prompting us to shift SAR to 15972. There after it moved above SAR Prompting us to reverse our positions to long with SAR at todays low. There after it started to move up and formed Pivot Low prompting us to shift SAR to 16035. BNF closed virtually at the days high indicating the strength of the bulls. We carried forward on long with SAR at 16035.

M.Mahiidar

Enjoying Life

Trend is Friend.