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V-Guard Can be a Good Play

Discussion in 'Technical Analysis' started by shabbir, Jun 11, 2012.

  1. shabbir

    shabbir Administrator Staff Member

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    vguard.png

    6 Months chart of V-Guard Industries Ltd is really interesting and I think this can be a good play technically as well as fundamentally.

    Share your views on how you would be playing on this stock? I will share my way of playing it soon.

    Charts by Chartink.com
     
    Last edited: Mar 13, 2017
  2. abhi007ds

    abhi007ds New Member

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    As evident from chart 180 was good support for this stock. Recently it has given breakout with good volumes from its previous high of 205 made in Feb 2012.
    So I would like to go long on this stock with stoploss at 205 on closing basis & play for target of 240-250 levels which is all time high price for this stock.
     
  3. sudhirag

    sudhirag New Member

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    how can we arrive on a next resistance for this stock? sorry it is a beginner question perhaps...

    should we use Fibonacci or refer an yearly chart...?

    Sudhir
     
  4. shabbir

    shabbir Administrator Staff Member

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    SUDHIR, you have 2 options.

    1. Have a target few times your stop loss. If your stop loss is 10 Rs below the purchase price, you can have a target of 3 times or 30 Rs from your purchase price as target.

    2. Use a trailing stop loss and ride on your stock. For all time highs, I don't prefer assuming resistances.
     
  5. csnatu

    csnatu New Member

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    Hi shabbir
    I agree with you . it has given clear breakout.but i have one question, How to identify such stocks quickly?
    I have to check the charts of all stocks and apply criteria,
    csnatu
     
    Last edited: Jun 11, 2012
  6. masihpatel

    masihpatel Active Member

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    Hello shabbir,
    Can we have this sock for short/medium term investment say for 1-3 months horizon?
    what I analyse that EMA20 is well above the EMA80 and it has got support at 215. Please correct me if I am wrong.thx
    Peace be upon you.
     
  7. shabbir

    shabbir Administrator Staff Member

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    You should have your short list of good stocks and track those for patterns that you are comfortable trading.

    If you don't have a list of stock you can create them from this thread

    Once you have your list and you get those stock tips from your broker, you can add them to your list of stocks if you see bullish patterns being formed in the stock over time.

    Time is not a factor and what matters is the target. If you have purchased a stock at the right price, you may not need to wait months to achieve targets but yes you can use trailing stops to make better return on your investments over time.
     
  8. sachinmore08

    sachinmore08 New Member

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    I am sill new to technical analysis but through my current understanding I can think of 2 options as below -

    Option1 - In my opinion one should wait to break out actually happens @235-240 level which is its all time high and ride the profit with stop loss at 205.

    Option 2 - MACD currently has formed wide divergence..also price moving along Bollinger Upper band it clearly indicats bullish trend is still intact. So in case it does not break its all time high price then looking at bullish trend one should buy on dips (at oversold region) and sell at overbought region.

    What say?
     
  9. shabbir

    shabbir Administrator Staff Member

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    Sachin, we should not always wait for all time high breakout and break out above the recent peak can also be considered as breakout.
     
  10. Suresh_Sinha

    Suresh_Sinha Active Member

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    Nice spotted and though you don't share tips, I profit more from your tips than those tips providers one. :D
     
  11. sachinmore08

    sachinmore08 New Member

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    Can you please also hv a look at Lanco Inratech ? I hv been tracking this script for 1 week as charts were looking attractive i could hv made money here but.. could not able to decide if should buy. frankly speaking not feeling that confident to initiate a trade. Also on V-Gaurd ..after reading ur post..i was watching it since today morning and saw it gained around 6 % today..I could have bought it early in morning ..but again due to dilemma could not initiate trade. dilemma was that it already had reached very close to its all time high was not sure if it is good time....not sure why am i lacking confidence in trading technically or do i need any paradigm shift in my thinking style or am being very defensive? pls guide..
     
  12. shabbir

    shabbir Administrator Staff Member

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    Not buying stocks at all time high is one of the fear of every Indian investors but I prefer buying the high stocks because I believe in buying high and selling higher and any stock is at 52 week's high can always go few notches higher.

    If you are not getting confidence to trade, try paper trading.
     
  13. masihpatel

    masihpatel Active Member

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    Great jump today,but I could not able to invest :(
     
  14. anaand01

    anaand01 New Member

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    Now the CMA is 241 (high 244) ,pl share ur analysis. how can we conclude after looking six monthly chart. we have to see the resistance level and tops in the past.
     
  15. monilhathi

    monilhathi New Member

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    Sold @250 at BSE today. Made a decent profit and am happy with Shabbir's 'tip' :)
     
  16. shabbir

    shabbir Administrator Staff Member

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    It was not a tip but a suggestion on how to play the patterns the way I play. :D
     
  17. monilhathi

    monilhathi New Member

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    Yup, agree and hence the quotes on the word tip. :). Btw, I now rarely follow any tips and your take on V-guard helped me do my own research and buy the stock. I request you do give more pattern ideas if possible for some of us who rarely have time to research deeply and someone who is not yet actively involved in market. Thanks for all your help!
     
  18. shabbir

    shabbir Administrator Staff Member

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    Yes will do that. :D
     
  19. drsuraimardi

    drsuraimardi New Member

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    Shabbir you will be amazed to know that I bought V-guard @217 on 11/06/2012 and sold it @236.50 on 13/06/12. And all this was possible because of the knowledge of technical analysis.However I could have earned more money if I would have waited for more days when it touched 250.I believe in long term this stock can touch 275-280 but I don't want to wait whenever I get 10% in short term as was the case here.This is my cardinal rule now a days to beat volatility and uncertain Indian Policy makers. Last year I was earning 15% in Thomas cook within 2 days of buying but didn't book profit and after 5months I sold it with about 20% loss.So now to me if a stock is giving me 5 to 10% profit within a week I book profit at least 80%.
     
  20. shabbir

    shabbir Administrator Staff Member

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    Yes you should always aim small hit small.