TCS – Bullish 2580, SL: 2480, Target: 2680

[Abirami Duraisamy]

The following are analysis in the sequences with reference to the marking in the chart.

Seq 1: LT-LB sequence formed but the volume is not significant enough to qualify for creating short position.

Seq 2:HB-HT sequence formed but the volume is not significant enough to create long position.

Seq 3: LT – LB sequence formed with high volume on 16th Apr, the short position can be created: Trade Plan: Direction: Short, Entry below 2513, SL: 2664, Target: 2362

Seq 4:HB-HT Sequence formed but the volume is not significant at the breakout to create long position.

With the current trend(Seq 5 in chart), HB is formed at 2480 and the breakout happened at 2580 with significant volume, hence long position can be created with below plan. Trade Plan: TCS Direction: Long, Entry above 2580, Stop Loss: 2480 and Target: 2680

[V.VEDANAYAGAM]

Dear sir /madam
The VOLUME is GOOD in the scrip except for the first week of DEC 14
IN Seq5 the difference between BOTTOM and HB is very low to apply DOW theory These two BOTTOMS can be taken as equivalent rather than lower and higher
However in the selected chart in between Seq1 and Seq2 there is a HB /HT formation(ie middle of DEC14 TO middle of FEB15) which can allow the following trade plan TCS long Entry 2580 (middle of FEB15)
SL 2440 ( Risk140)
target 2760 ( Reward 180)which is attained in the first week of MAR 15

[Abirami Duraisamy]

Hello Sir, Thanks a lot for the input, I agree that the bottom at seq 5 is almost equal to previous bottom. Although Seq1 and 2 form the required sequence as per Dow theory, I am not qualifying it, considering the volume at breakout.

[Vinoth Kumar]

Its a Good Work.  I have some Doubt in Seq 5

1.How Target 2680 is achieved.

2.As per DOW THEORY in Seq 5 there is Not much Volume how can it be Bullish.

[Abirami Duraisamy]

Thanks a lot for the feedback.

1) Entry is at breakout of previous top(2580) and SL is at higher bottom(2480). Target is 2580+100(Risk), which is 2680, the same is shown the chart attached.

2) I agree, I have considered the breakout on 11th Aug, but overlooked the volume of 12th Aug, which has higher value to qualify the bullish.

[Author]

Posts