PAEL Chart 29th September 2014

This is the daily chart of PAEL. The script has made a high of 34.39 on 05/09/14 and right now the price of the script stands at 26.41 which is a difference of  7.98 rupees. it has broken the support of rising wedge, current correction on fibonacci recognition stands at -111%, RSI of 32.21, volatility of -18.74, momentum of -4.05, MFI 11.53. The last support from the last bull run stands at 26 which if broken will lead to the support levels of 24 to 24.40. 

No one can predict when will it take a bottom and start to resume its bullish run again because in trading you will never know the bottom price of a script, but an investor would buy this script right now because he/she will know the potential of this script in long term. 

All the technical indicators suggests right now to jump in this script when everyone is selling this script in panic, which means a risk to the buyer, but high risk means high return and only those will win who will take high risk in it.  

SHEL 25th September 2014 Chart

I think the resistance of 300 is too much of a asking for this script. This was second attempt to cross 300 since the fall from 360. 

PSO Chart 23th Sep 2014

Current price of the script is 368.18. Today movement has inched closer to the breakout of 373.76 on falling wedge. The breakout should be achieved with higher volumes or else it would not sustain the breakout. If it is achieved, the script has to close the window from 372-382.

Berger Paints 18th September 2014

The 18th September chart of berger looks like a evening star pattern which is bearish in nature. There is also increase in volumes from 16th september with highest volumes on 18th september. 

The Market Is Never Wrong

Steve Nison on "market is never wrong"

"One of my non candlestick seminars is called the "Techniques of Disciplined Trading Using Technical Analysis." In it, I discuss the importance of a disciplined approach to trading. To convey this idea, I use the word "discipline" as an anagram. For each letter of the word DISCIPLINE I offer a trading rule. For the letter N my rule is "Never trade in the belief the market is wrong.

What do I mean by the expression, "the market is never wrong?" It means do not try to impose your beliefs on the market. For example, if you are firmly convinced crude oil is going to rally, wait until the trend is heading north before buying. Say crude oil is in a bear market. If you buy in the expectation that a bull market will materialize, you are then trying to impose your hopes and expectations on the market. You are fighting the trend. This could be disastrous. You may ultimately be correct in your bullish viewpoint, but by then it may be too late.

As an analogy, imagine you are driving along a one-way street. You notice a steamroller going down this one-way street the wrong way. You stop your car, take out a sign (that you always carry with you) that reads, "Stop, Wrong Way!" and hold it in front of the steamroller. You know the steamroller is going in the wrong direction. But the driver may not see you in time. By the time the steamroller turns around, it could be too late. By then you may be part of the pavement.

So it is with the markets. If you are bucking the trend, your outlook may turn out to be correct. But by then it may be too late. Margin calls in futures may force you out of the position before your expected move occurs. Or, worse, in the end, you may be right, but by then you could be broke.

Do not try to impose your will on the markets. Be a trend follower, not a trend predictor. If you are bullish, jump onto up trends, if bearish, hop onto downtrends. one of the Japanese books I had translated expresses this idea almost poetically, "buying or selling from the beginning without knowing the character of the market is the same nonsense as a literary man talking about weapons. When faced with a large bull or bear market they are sure to lose the castle; what seems safe is infinitely dangerous. . . . Waiting for just the right moment is virtuous and essential."

Importance of Number three in Technical Analysis

The following is a quote from John Murphy's book Technical Analysis of the Futures Markets:

"It's interesting to note how often the number three shows up in the study of technical analysis and the important role it plays in so many technical approaches. For example, the fan principle uses three lines; major bull and bear markets have three phases (Dow theory and Elliott Wave Theory); there are three kinds of gaps some of the more commonly known reversal patterns, such as the triple top and the head and shoulders, have three prominent peaks; there are three different classifications of trend

(major, secondary, and minor) and three trend directions (up, down, and sideways); among the generally accepted continuation patterns, there are three types of triangles-the symmetrical, ascending, and descending; there are three principle sources of information-price, volume and open interest. For whatever the reason, the number three plays a very prominent role throughout the entire field of technical analysis."

PNSC Chart 12th September 2014

"Hanging man" is a bearish candlestick which can be significant trend reversal. An ideal hanging man would have a short real body with long lower shadow and no or very little upper shadow. A major resistance lies ahead for pnsc. A number of times in past, the script tried to cross the value of 78 which it failed multiple times. if it breaks the resistance of 78 this time with a staying above it, it will become a support level for it, otherwise caution should be exercised.