Saturday, January 29, 2011

Buy ONGC at or above 1125 for nice gains


“A picture speaks a thousand words”, a well-known adage that speaks the virtue of picture and the wealth of information that it contains and conveys.

In the interesting world of equity market where the law of supply and demand dictates the direction of an equity instrument (e.g. stock) and the market  where  the  buyer (Bulls ) and  seller ( Bears) often  wrestle  with  each  other  on  the price of the equity.   And then there are cases when both parties decide to stay on the sideline due to lack of interest or fresh leads.

In any case, when we plot the chart based on the opening and closing price and the volume transacted, it became clear that we can visualize and observe the action going on, of course as to what is really going on, that is still open for interpretation.

This has lead to the adoption of Technical Analysis (TA) which includes charting, various forms of simple and highly sophisticated technical indicators, Japanese candlesticks among investors and traders, fund managers around  the  world  in  their  short-term,  mid-term  or  long-term  investment decision-making.     They use TA to better understand market behavior (or rather the collective human behavior) to uncover opportunity or shun potential losses.

Another reason why TA has been gaining popularity, is because we human are emotional creatures and can be easily affected emotionally.  Emotions such as fear or greed often make us susceptible to rational exuberance or even excessive gloom. By employing TA and having them implemented in computer programs, we can automate and eliminate the emotion out of the decision making.


Quoting from the famous John Murphy (Philosophy of Technical Analysis),TA is based on the following three premises:

    Market actions discount everything. 


    Prices move in trends. 


    History repeats itself. 




ONGC is consolidating at 1120   1140 levels in its  oversold zone where as  market tank by almost 4 % in previous 3 sessions .It is indicating that 1100 is a nice support  for it and  every investor is ready to  keep it  in portfolio ....more over it was traded at 1275  in Oct 09 ...
Buy ONGC at  or above 1125   for nice gains ...positional  targets  marked in chart...
Intra day targets...
1136     1142      1152   1164     1176   1189 
Keep  stop loss of 1112  and trail it accordingly ...

1 comment:

  1. Thanks for sharing the information. That’s a awesome article you posted. I found the post very useful as well as interesting. I will come back to read some more. commodity trail

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