Thursday, October 3, 2013

VIPIND - Probable Patterns in Making

4th Oct 2013 - Update
VIPIND made perfect doji on 3 Oct and made bearsih hammer on 4th. But VIPIND was able to manage closing above 10DEMA at 51.08 and closed at 51.55 after making high of 53.3. Bearish hammer need to show its follow up action in coming days.

 
One need to be catiuos that if VIPIND breaches 43.50 before breaching 55, then Double Top pattern is confirmed

1st Oct 2013
As we can see in daily and weekly charts of VIPIND, an ascending triangle formation is under process (having completed 0, 2 & 4th point on trendline connecting higher lows whereas 1 & 3 on trendline connecting constant highs).


Based on daily chart, support exists at trendline connecting higher lows.
One can initiate trade based on below levels:

Option 1: Wait till pattern is complete
Buy above 55, target 1 = 62 (200DMA), target 2= 71 with SL at 49.

Option 2: Take trade now with stict SL (without waiting for pattern to complete - not advisable)
Buy above 50.6, target 1 = 55, target 2 = 62 (200DMA), target 3= 71 with SL at 49.

Important Note:
There is another pattern in making i.e. Double Top. If price breaches 43.50 before breaching 55, then Double Top pattern is confirmed and then below trade order can be placed:
Sell below 43.5, target  = 31.5, with SL at 49.55.
 

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