Deepak Nitrite - Bought more of them. Weakness below 1820.

@SAnngeri Gujarat Gas - had this beautiful contraction till May 31st pump and thereafter the price moved up. Now, consolidating near 20EMA. Perfect for a low risk-entry set up with a strict SL.

Rashtriya Chemicals & Fertilizers RCF -

a chart that caught my attention immediately. My favorite horizontal range with volume contraction. Will wait for breakout/breakdown in this. Lots of big green candles in the range. On radar.

In this thread, I will explain to you the psychology behind the cup & handle pattern. The attached chart is of Balaji Amines.

Point 1 = Profit booking by many traders and fresh short positions opened taking the stock down till level 2 where there is no more selling

Point 2 - a level wherein the stock becomes attractive again for fresh buyers and short positions will be covered adding strength to the stock.

It moves back till point 3 which is now the psychological resistance level and would again see profit booking by weak hands.

But, this time the stock fell till point 4 wherein the buyers (smart hands) are willing to pay a higher price and further push out the weak hands absorbing all their selling. This is the ideal entry point for a risk-loving trader as this is the closest to the stop-loss point.

Finally, you see - in the whole process - the stock has shifted hands from uninformed retail investors to "smart hands". And finally followed by a cup and handle breakout. The target will be the depth of the cup projected upwards from the breakout level.

When to take entry for a conservative investor? At candle no 5 - the breakout candle and stop-loss a few % below breakout level.

In the next thread - I will explain to you how the same principle works for most of the patterns (No need to mug up the pattern names)

Prince Pipes - a major H&S top in formation on a weekly scale. the breakdown should be with a strong candle closing below 575 for the confirmation

Especially when a lot of stocks have flown higher & the index is near resistance, I would be observing the chart closely if it breaks out all of a sudden or retraces back a bit. If it is a retracement - that would give another opportunity to trade a few auto names.

Nifty Auto

#DeepakNitrite valuation is most attractive in the space...

growth will be most explosive in the space...

Deepak Nitrite - Learning?

If you are a complete beginner to the market, try to pick 20 stock charts you will see daily. Over a period of time, you will understand their character better than watching 200 charts randomly.