So, here is an interesting chart - DLF, the stock which is firmly in a bear trend.
However, the volumes traded today (3.62 crores) were extremely high (4th highest ever for the stock in its history, which includes the listing day).
Historically, whenever this has happened, DLF has rallied between 6 to 10% from that days close.
This gives 2 targets 195 and 203 if this move happens now.
Moreover, this moves come after DLF has moved up after making a low near 173 (the third time in 5 months that it has turned upwards from here). This can serve as a multi-month bottom, giving more power to the bulls.
Looking at current charts, DLF has a resistance between 192 and 196, where it might take a pause. But once crossed, it can race upwards to 205-210 - all in this month.
Good luck.....
4 comments:
amazing observation regarding the volume aspect.fiii too made a good buy in cash as well as futures.today the real estate index itself was up by 5%.. hope its a new trend for few days.. :)
Sir, a query here. How do you screen stocks with possibility of a swing.
At any point of time, one can track 10-15 stocks closely during market hours, and some more after market hours. In addition, you can have a scan on your charting software, based on parameters set by you. I use Amibroker and scanning is very easy and fast
The length of a trade depends on the time frame you track it on. An analysis based on 5 min or 15 min moves can be only for intra day. However, for 'swing', you need at least an hourly time frame
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