Thursday, October 28, 2010

Is it the beginning of correction in Sensex?

Yesterday, we saw correction in Sensex with huge volume. Nothing new. It happens from time to time in Bull market. But looking at technical chart of Sensex using Ichimoku indicator shows different picture altogether.

Sensex Ichimoku
Sensex Ichimoku

The sensex closes below Kijun-Sen level resulting in first signal of correction. Also, tenkan-sen crosses kijun-sen line further confirming the sell signal. So, you can expect some correction in the market in coming days.

Coming to levels of support, the first level of support is at 19,000 and next level support, shown by chikou span line is at around 18,000. Place your strict stop-loss and try to exit from profit making shares now.

Another strategy can be, buy more shares or mutual fund units in correction phase, if you're a long-term investor. This will average your purchase price and you'll get more assets in your portfolio.

If you've any doubts on this topic, mention your query in comments section below.

Tuesday, October 26, 2010

Updates on IFCI & NTPC Technical Charts

Both IFCI & NTPC charts have formed a common pattern w.r.t. future kumo as per Ichimoku indicator.

Let's start with IFCI first.

IFCI technical chart
IFCI technical chart

There are 2 major points in this chart. Although price is moving upwards, but kijun-sen line is flat from last so many days. This line does not justify the rise in price of IFCI. We've already seen many examples, when Kijun-Sen line is flat, the price comes to atleast that level.

Secondly, see future kumo. The bottom line of future kumo is also flat. That means, price should come down in future.

Both the factors indicates that in coming days, we may witness price of IFCI can come to Rs.66-Rs.67 levels.  If the price closes below this line, we've see further downside.


The same pattern has been formed in NTPC chart. The bottom line of future kumo is flat, signifies that price will come down significantly in coming days. Watch out the levels of Rs.200 carefully. if the price & Chikou Span (CS) closes below this level, we will see further correction in this share.

Got any doubt. Just mention in below comments.

Sunday, October 17, 2010

EURNZD Technical Chart - Forex

Although EURNZD currency pair is moving up from last so many days but 2 things on its daily chart are not supporting this move.

Here is the daily technical chart of EURNZD. I've put Ichimoku, Donchian Channel (Dotted blue line) and Aroon indicators. Dark blue line is Kijun-Sen of Ichimoku.

EURNZD daily technical chart - ichimoku
EURNZD daily technical chart - ichimoku

As indicated by Aroon indicator, the price will come to its first support level viz. Donchian line @1.830 in coming days. If Kijun-sen line of Ichimoku indicator stays flat even then, as it's now, it will come to level of Kijun-Sen @1.8025.

Flat lines always attract price.  That's the basic rule of using Ichimoku.

Major support levels of Sensex & Nifty

I'm getting lots of queries from investors as we've witnessed some correction in Indian stock market last week. So, I'm posting technical charts of Sensex & Nifty to get major support levels. I'm using Ichimoku Kinko indicator in daily charts.

Let is first see the daily chart of Nifty.

Nifty Daily chart - Ichimoku
Nifty Daily chart - Ichimoku

The price is well above kijun-sen line & Kumo. The future kumo is also bullish clearly stating that we're still in bull run. Kijun-Sen is currently around 5940 level. If Nifty closes below this level, just exit from your long-positions. That will be first sign of weakness in market. But do not take any short position. If Nifty & Chikou-Span (CS) closes below kumo, that will be right time to take short position. Will give you illustration on that if that happened.

Now, let us see the daily technical chart Sensex using Ichimoku indicator.

Here also, Sensex is well above Kijun-Sen line. The first support level of Sensex is currently at 19,760. So, make a strict stop loss of this level for your long-position.

If you've got any doubts on this article, please feel free to ask under comments section below.

Friday, October 1, 2010

NTPC Technical Chart using Ichimoku

NTPC on NSE India was trading between the range of 192-202 for most of the time. Now, it has come to Rs.220. Let's analyse the reason for it and future prospects of this company using Ichimoku Kinko technical indicator.

NTPC India
NTPC India

NTPC India

On 13th Sep. 2010, price closes above kumo, which was acting strong resistance for quite some time. At the same time, chikou Span (CS) also closed above the price - resulting in Kumo breakout.

The price started rising above along Tenken-Sen line. It's now trading at around Rs.220 level.

One important thing to notice here is that although price is rising, but Kijen-sen line is flat.

Whenever Kijun-Sen line get flat, the price always gets attracted to it.

That means, the price of NTPC can come down to Rs.205 level. If it sustains there, it will move upward again. If not, it will come down more around Rs.198, which is first line of Kumo.

Got any doubt? Please share your thoughts on this topic in below comments.

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