Vignesh

[Vignesh]

I AM VERY SORRY SIR,

I did not see this analysis was on dow theory, as per dow theory you are right, i replied to the wrong topic.

[Vignesh]

Sir, i think you have left to consider the fact that coal India gave 27.4 rs dividend.( it colsed at 318, the day before the book closure and next day after dividend it closed at 296, even after a  Rs27.4  div it fell only Rs 22)
i am working on the chart currently will post my analysis shortly, i think its a buy at current levels

[Vignesh]

Mam,
can you please explain how/ why we could have created a short at 1400 ?

i had a very short holding period in mind when i analysed this chart, to be frank now i think this chart might not be the best for double top, but it fits the description of a double top , ie reversal pattern

my conviction was that once the stock broke 1200’s levels( which was an area of support with good volumes during sept15) , the buyers who were present in those levers ran out of purchasing power during Jan-Feb 16,( so sellers dominated), if you notice 1200’s level was a very crucial, and volumes spiked when the stock came back to test those price levels ( volume spikes = increase in interest/participation), so at that point of time i wanted to short the stock. then i wanted to use EOD CANDLE STICK ANALYSIS to time my entry.

[Vignesh]

yes Mam, I do agree there was a DOUBLE TOP, GOOD SPOT

[Vignesh]

Mam,double bottom is a reversal pattern, even before to the double bottom (you sported ), the stock was in a uptrend ( making higher tops and higher  bottom, which made a Equivalent bottom , ) so technically its not in double bottom, so i did not mention it.

but i feel if i didn’t take the best screen short to make you fully understand the situation. i have attached a better screen short. please do take a look and share your views

[Author]

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