Wednesday 2 December 2015

3 Stocks That Look Technically Strong For Investments (2nd Dec 2015)

Base Setup Used :
Relative Strength Index (RSI) : As Price Strength Indicator (Leading)
Moving Average Convergence and Divergence (MACD) : As Price Cycle Indicator (Lagging)
50 Week Simple Moving Average (SMA) : As Trend Following Indicator (Following)

Other Factors Kept Into Consideration :
Price Volume History

Bartronics India :
CMP : 11.80

Bartronics successfully held price above Support and Broke 50 SMA with acceptable good volume.
While Bartronics was dancing on its support price strength also turned +ve along with price cycle also showing signs of bullish cycle.

IMP Powers
CMP : 82.10

It broke out with standard classic continuation pattern. The price setup is very common and is highly visible on both weekly and hourly chart. RSI is showing dual confirmation with Bullish sensitivity along with regular upside strength, price cycle is also positive.

There is 3 level pattern formation, coil, bullish continuation triangle and trend line. price broke with good upside and volume required for breakout of all 3 levels of patterns.

Madras Fertilizers
CMP : 16.95

Looks like classic turn around stock. Trend Line broke along with double bottom. Huge breakout volume, RSI and MACD also positive supporting Turn around.

Notes For Technical Investors :
1. There's no better investing strategy for Technical Investors than Pyramiding. Firstly don't invest without strategy, second don't use any other strategy than pyramiding.
2. Don't buy on strength always wait for breakouts. Nothing is confirmed with just Technical strength.
3. You must have exit strategy cuz Pyramiding is concentrated portfolio strategy, a concentrated portfolio strategy isn't good unless you have an exit strategy.

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