Trading Opportunity with Jaiprakash Associates

Let us try to read what Jaiprakash Associates Charts says .

I can see some good trading opportunity with Jaiprakash Associates .

First lets look at long term daily chart for 18 months . Click on the charts to enlarge it .


You can see the it was in downtrend in between and then from last 6 months its moving sideways and its making symmetrical triangle , Its a kind of trading channel which is contracting , which means bulls and bears both are trying hard to win . once its crosses up or down , it will get some direction up or down

You can see clearly how strong is the resistance at upside (see the sliding line at the top , price touch that and reverse , so every time prices approach that area , there will be lots of sellers at the point and you should expect prices to fall again )

. This is the view from high . Let us now take a look from little near , Lets see its 6 moths charts to get a closer look .


You can see two view here , at 6 months level , you can see prices move into a contracting range.

When you see prices for last 1 month , you can see that its moving in a channel like a rectangle , so once it moves out of smaller rectagle , it should speed up the direction and then find support or resistance as the case may be .

What can be the trading strategy for Jaiprakash Associates from this point onwards ?

If you see the price channel , you can see that its 65 - 78 , and the broader channel price is again contracting and is around 60-80 in coming days . So long term and short term ranges are same . So the move below 60 should break it further and prices above 80 should give it strong strength .

So a simple strategy can be :

Buy above 80 with SL of 78
Sell below 61 with SL of 64

Remember : Dont forget for see overall markets directions , Markets sentiments should be in sync with the strategy . Also see volumes , if the breakdown below 60 or breakup above 80 is with below average volumes , be suspect for the moves .

Make sure you put Stops very strictly and follow it once its touched without any emotions and hope . you should respect SL more than your profits , you can go easy with profits , but never with SL .