Wednesday, September 29, 2010

Kethley Instruments : NYSE:KEI finding support on Kumo

From the starting of this year, Kethley Instruments Inc., New York Stock Exchange (NYSE) listed stock is in bull run. Let's try to find out the reasons for the same from technical analysis using Ichimoku indicator.



Kethley Instruments (NYSE)


 


Keithley NYSE


 


The price closes above kumo around 8th Jan 2010 at around $5.2. Chikou Span (CS) also managed to close above kumo at that time, resulting in Kumo breakout -a strong bullish signal.


It started rising without any major correction. Since then, it got support 5 times on kumo and always bounced back from there to rise further.


At the time of writing this article, it is trading around $12.4.


One more important thing to watch here - the thickness of Kumo. It's thin; that why it is getting support on lower kumo line, most of the time.


Secondly, although price is rising, but Kijun-Sen line is flat, which means it'll attract the price. So, price may come down to Kijun-Sen line i.e. $8.7 in next few days.


If it closes below Kumo, book your profit & exit from it.


Take short position in it, when price & CS - both closes below Kumo.


Got any query? Write down in comments section below.

Kumo Breakout in Silver Chart - Technical Analysis

Silver - Ichimoku


Today when I saw the technical chart of Silver, only one word comes to my mind - Kumo Breakout.



Let's find out what's that & why silver is trading at all time high.


 


I am using snapshot of Silver chart from MetaTrader software using Ichimoku indicator.


Silver Ichimoku technical Chart


Around 26th Aug 2010, Silver price closes above Kumo and at the same time Chikou span (CS) also closes above kumo.


When both CS & price closes above kumo, just buy that without any doubt. That's a signal that price will surely move upwards now. Just keep the Span A and Span B lines as your stop-loss in the beginning & then later on Kijun-Sen figure as your trailing stop-loss. You can use ParaBolic SAR value also as a trailing stop-loss. Whatever you're comfortable with, but don't trade without stop-loss & then trailing stop-loss.


Coming back to Silver chart, one should place trailing stop-loss of Kijun-sen in it while trading.


Hope you like this article. if you've any doubts on it, please discuss the same in comments section below.

Tuesday, September 28, 2010

Koutons Retail India Ltd. is in bearish mode

I just saw this chart of Koutons Retail (India) ltd. The chart is in correct mode from last several days. All the reasons are very clear for it as far as technical chart is concerned.


Let's analyze the position of Tenken-sen, Kijun-Sen, Chikou Span & Kumo lines in this chart.


Koutons Retil India Ltd. technical chart


 


TS crosses Kijun around mid of August 2010. That was the first signal of weakness. Just after 1 trading session, the price & CS closes below kumo, thus confirming to take short position in the chart.


Around 6th of Sept. 2010, the price tried to cross kumo, but failed.


Kumo lines acts as strong resistance for any stock, if the price is coming from below.


 


Result: The journey of the stock price to southward direction continues & is still down.



When to book profit: If you've taken short position in this stock, book your profit, when price closes "above" kijun sen.


Take long position ONLY when price & CS closes above kumo.


If you have any doubts on this discussion, ask your query below under comments section.

EURUSD Forex H4 Technical Chart

Today, we'll analyze the forex chart of currency pair EURUAD on H4 timeframe using Ichimoku & Bollinger bands indicator. Let's see why it is rising from the last so many days without any major correction.


Here is a technical chart of EURUSD.


EURUSD 4H Technical chart using Ichimoku


Around 13th Sep 2010, price closes above Kumo after tenken-sen crosses Kijun-sen. That was the first signal to buy. At the same time CS also closes above Kumo, therefore, confirming the start of bullish run.


We'll not take any bullish call if CS does not close above kumo.


Now, the bullish signal is also confirmed by Bollinger Bands - signified by Blue dotted line. This is a variant of Bollinger bands used by many others.


From 18th to 21st Sep. 2010, the price tries to come down, but Kijun sen hold them. Kijun sen always acts as support line for price. Result: Strong bullish run.


When to book profit: When price closes below Kijun Sen, that will be right time to book profit & exit. Till then, just ride the bull.


The price will take next support on Kumo line & sometimes, price again starts moving up from there.


For better results, consider daily & weekly chart also to get the idea of support & resistance using Span A & Span B lines of Kumo.


The chart snapshot is taken from MetaTrader software - one of the best free software available for Forex Trading. Provides hundreds of technical indicators. You can also write your own code to analyze the chart.


Hope you'll find this article useful & informative.


If you've got any doubts on this post, just ask below under comments section.

Sunday, September 26, 2010

Bursa Malaysia Kuala Lumpur Composite Index Technical Chart – Bullish

This is one of the perfect example of Kumo breakout. The FTSE Bursa Malaysia Kuala Lampur Composite Index is in bullish mode since July 2010. Let's study the technical chart with Ichimoku indicator.


kuala-lampur-composite-ichimoku


 


 



On 18th June 2010, Tenkan Sen crosses Kijun Sen below Kumo. Since the cross was "Below" kumo, it was a weak bullish signal. Result: Price faces resistance & can not cross kumo.

On 28th June 2010, it gave Kumo breakout as prices manages to close above kumo at 1325.54 but Chikou Span (CS) was below Kumo. In fact, price came below Kijun Sen but finds support on Kumo.

On 6th July 2010, price managed to close above Kijun Sen & around 14th July Chikou Span(CS) also managed to close above Kumo. That was the golden chance.

Whenever, price & CS closes above kumo, just buy that stock & put a stop loss of Kumo.

Result: Strong bull run & it reached the high of 1479 also.

Book your profit when price will close below kijun sen & take short position when price & CS closes below Kumo.
 

Thursday, September 23, 2010

Reliance Industries Ltd. (RIL) faces resistance at Kumo

We all have witnessed Sensex rally in last few weeks. Major stocks have participated in this rally except the big one - Reliance Industries Ltd. (RIL). Let's see the reasons below.

We're taking the technical chart of RIL using Ichimoku indicator.
 


Ichimoku Chart of Reliance Industries


The first resistance it had on around Rs.1,000 mark - the kumo resistance. Chikou Span (CS) tried to cross it twice in the beginning of July 2010, but failed; although closing price managed to close above kumo. But real kumo breakout rule is when CS AND pricer closes above kumo.


Now again, 4 days back, CS failed to cross kumo lines again. The closing price also failed to cross Kumo. Now, the price is moving downwards, where it will get its first support on Kijun sen line.


Clearly, Reliance will move upward ONLY when CS & its closing price closes above Kumo.

Saturday, September 18, 2010

Technical Analysis of Gold – Daily Chart

Gold is rising almost daily & currently trading at $1273 at the time of writing this post. Let's see the reasons for it & also trying to find out the major support levels of Gold.



Gold Technical Chart


Here is the technical chart of Gold using 90 days Simple Moving Average (SMA), Donchian Channel, Double smotthed Stochastic. I've used ADX candles instead of normal candlesticks.


On 6th August 2010, Gold prices closes above 90 days SMA & Donchian Channel. That gave the strong Buy signal. Generally, 90 SMS is similar to Kumo of Ichimoku cloud & Donchian Channel is similar to Kijun sen.


The action is confirmed by double smooth stochastic, which crosses & move above 20.


The result - another upward rally of Gold & currently trading at $1273.


Support Levels


Gold will find its first support at Donchian line which is currently around $1236 & 90 SMA denotes $1217. If the price "closes" below these 2 support levels, you can take short position, as you'll witness correction in it.

Friday, September 17, 2010

Why Sensex is rising?

Let's analyze why Sensex is rising from the last 3 months. We'll take the help of one of the best indicator & my own favorite one - Ichimoku.


Sensex Technical Chart


On 14th June 2010, at 17,338, sensex crossed the kumo and this is called "Kumo Breakout". At the same time, Chikou Span(CS) also crossed the kumo, thus confirming the same. So, the result - upward rally.


At the end of August, price started falling down. But Sensex got support on Kumo & on 1st Sept., 2010, price crosses Kijun Sen. Adding to it, on 6th Sept, Tenkan Sen crosses Kijun sen. And the rally is still on.


Till, price is above Kumo, it will continue to rise. The day it closes below kumo, one can exit long position & can take short position.