SAIL BEARISH BELOW INR 50.00; SL 52.00; TGT1 48.00; TGT2 45.00

[Gopalan R S]

SAIL CMP – 50.50 (closing price on Oct 10, 2016)

~ Encircled High Bottom – High Top sequence works as expected with Dow Theory with expected volumes. However, it does not meet the target expectations at INR. 55.00.

~ SAIL’s price is in “non-trending range” since mid Jul to present :

– Resistance – INR 50.25 ;

– Support – INR 45.50

 

 

SELL CALL :

Trade Plan : ~ Can be ‘Shorted’ (sold) below INR 50.00 with good volumes for an immediate target of INR 48.00 and further at INR 45.00 with a stop loss of INR 52.00 due to resistance above INR 50.00.

~ Will provide higher weightage to sell call due to following reasons:

1. Global markets have been flat to 1% negative on Oct 11, 2016.

2. NASDAQ is 0.5% negative @ 8:00pm IST on Oct 11, 2016.

3. NIFTY & BSE have been trading flat since the recent rate cuts and would be expected to accommodate Oct 11th’s Global markets trend.

4. A negative Hangman is seen on candle stick chart for Oct 10th reversing the recent trend.

This is my first analysis with DOW and would appreciate your thoughts and comments on the analysis done. Thanks.

 

[EQSIS]

Here we can consider even more number of data points (at-least 1 year) for dow theory..

It seams you have missed to highlight the first trade.. Kindly check the attached chart

 

Request you to review / comment other people work, this helps you to gain more experience

[Gopalan R S]

Thank you for your inputs. For Trade 1, as indicated in the image, I do not see a LT-LB or HB-HT combination, please clarify.

[Gopalan R S]

First time lucky, I guess… the sell/short call given on SAIL achieved its target(1) today.

[Author]

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