Techincal Trading with Support & Resistance

We will learn about identifying Support and Resistance Levels using Charts.

In the Below Chart Representation, we can see that the Price movements are between Support and Resistance levels, at point 2 the stock is finding good support and then it breaks the Resistance levels. Now the earlier Resistance level, becomes the Support level for that stock, (point 3), now the stock has a new resistance level at point 4.

This means, the stock can find the support level or resistance level, once the support or the resistance level is broken, then that level transforms into a new support or resistance level.

This is very important for a day trader, as this forms the entire trading method for any day trader. Based on these support and resistance levels, there are many successful day traders in Indian Markets.

That’s all for today, we will join you with a new Trading Method tomorrow.

Thank you for joining us in this discussion

Happy Evening!
Day Trading Analyst

Post Market Outlook August 4th

Today the Indian Benchmark Index BSE, took a breather for a round of Profit Booking, there was some good amount of profit booking in markets today after a continuous 3 day gains. The Sensex fell 93 points from the previous close and closed at 15830 levels. Whereas, Nifty lost about 30 point and closed at 4680 levels.

In the global markets, European markets lost some early points, due to mixed earnings and profit booking from recent market highs. Even the Asian market's performance was a Mixed bag.

In Indian Markets the Auto Sector extended their gains today, in the Metals sector HINDALCO was a Biggest Gainer for the day, by advancing about 4.4% and closed at 112 levels.

Today's Performance for our Trading calls are as below:

ALOKTEXT:     High @ 21.45 and Low @ 20.70 (This hit our Resistance 1)

HDIL: High @ 290.00 and Low @ 273.60 (This hit our Resistance 1)

IFCI: High @ 53.30 and Low @ 51.30 (This hit beyond our Resistance 1)

JPASSOCIAT: High @ 253 and Low @ 207 (This hit beyond our Support 3 (Short Trades))

SATYAMCOMP: High @ 109.70 and Low @ 103.60 (This hit beyond our Resistance 3)

Our trading calls are purely technical in nature; this does not include any other information such as stock news, industry news, dividends etc.

Thank you for joining us in this Analysis

We will be back with Our Technical School shortly

Happy Evening!
Day Trading Analyst

Trading Calls for August 4th 2009

Symbol		Sup 3		Sup 2		Sup 1		Pivot	Res 1		Res 2	Res 3	V %	RS	W%R
ALOKTEXT		19.97		20.28		20.57		20.88	21.17		21.48	21.77	98.95%	2.20	-22.77
HDIL		261.07		266.18		275.22		280.33	289.37		294.48	303.52	99.95%	4.09	-11.21
IFCI		49.35		50.00		51.10		51.75	52.85		53.50	54.60	100.45%	2.90	-11.11
JPASSOCIAT		224.27		230.13		240.37		246.23	256.47		262.33	272.57	100.36%	2.94	-2.55
SATYAMCOMP		99.20		100.70		102.10		103.60	105.00		106.50	107.90	448.51%	4.27	-16.89

 

Legends:

Sup 1, 2, 3: Support Levels

Res 1, 2, 3: Resistance Levels

V %: Volatility Percentage (Higher the percentage, higher the liquidity)

W %R: William's Percent R (0 to -20 overbought levels, -80 to -100 oversold levels)

Note: Always Trade in the Market's Direction

Thank you for joining us in this Analysis, We will post the Trading Call's Outcome in the evening.

Happy Trading!
Day Trading Analyst

Pre-Market Outlook – AUG 4th

Yesterday, we saw BSE rising to its 14 month high by closing at 15,924, which was also followed by Nifty, which closed at 4711. This was due to the strong global cues, as most of the global markets extended their July rally into the first trading session of August. Today we can expect the similar outcome, as US Markets, opened on a very High Note. Asian Markets also followed the US Markets. Indian Market also will respond to the global cues in the same way.

Nifty closed beyond 4700 levels yesterday, which means that we have support levels for Nifty at 4645 and 4578 levels. Likewise, Nifty has a strong resistance at 4750 and 4790 levels, if Nifty breaks these Resistance levels, it might reach up to 4855 levels also. If Nifty opens above 4684 level, we can another upward rally in Nifty.

Thank you for joining us in this discussion.

Happy Trading!
Day Trading Analyst