HDFC bank – 18.9.15 – Dow – Bullish – CMP 1049 – Entry Above 1127 – Tgt 1283

[KRISHNA KUMAR MS]

I had chosen HDFC bank for study of practical activity using Dow Analysis.

The stock is as on date (18.9.15) on a upswing in line with the upswing in the market. There is no divergence between the stock and the bank Nifty. As on date this stock is trading at a CMP of 1049. As per the charts, if it crosses the previous high of 1127 Achieved in July 2015, than it is likely to achieve a target of 1283.

We have to enter this stock only above 1127 for a tgt of 1283 with a SL of 1049.

[Balaji]

Dear Krishna kumar Sir,

For Dow theory, the following conditions are applied to determine the market trend:

1. Type of chart – Line charts ( not candle sticks)
2. Minimum data lookup period – 2 years.
3. Spot the major tops and major bottoms and qualify them as higher or lower with respective to the previous tops and bottoms.

I have gone through your Dow theory analysis and my observations are as follows:

1. Look up period is short.
2. The LB identified is correct, but the LT, HB and HT is not correct. Particularly, HT is not yet formed.

Kindly request you to check with Murugan Sir. If I am wrong please ignore my comment.

[KRISHNA KUMAR MS]

Dear Mr. Balaji,

Thanks for your kind comments. This type of interactive sessions will improve our knowledge and understanding, hence comments are welcome.

I have gone through your comments and please find my observations.

1) I have used Line Chart only.

2) I had taken the data look up period of 2 years. But this is not visible in the presented chart as it will be too cramped.

3) The rate at which it is presently present is a Higher Top. I have analysed that if it will travel in the same way and forms the next Higher Top @ 1127, than only we should enter. The stock has presently gone up to in the 1070 Range today.

 

 

 

[EQSIS]

Dear Team,

i would like to add my point to your discussion, i could see the Lower TOP and Higher Bottom is too close, hence the significance of Selling Pressure or Supply Zone is less which is around 1020 levels.

The Above Marking from L.T and H.B can be viewed as Flag – Rectangle Area
The Prior to the L.T can be considered as Pole…

Note : for Better View Switch to Candlestick pattern.

All the above discussion/points are based on the attached chart…

I would appreciate this healthy discussion…. This helps us to understand the various view points…

[ragunathan]

Dear Sir,

In dow theory, need a duration of minimum 1 month between a top and bottom. I think that duration is not there between your top and bottom.

So please check this.

[Author]

Posts