Is the Market forming a “Head & Shoulder” Pattern?

manula

manula

Vice President - Equity Analytics

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Prince wrote:Exactly correct Bond. That is one of the points me to say Market is not Healthy.

There are more than 20 shares which are undervalued but have no investor attraction. Only a few selected shares are pumped up just to maintain the market in GREEN area. I observed some odd lots were traded last few days in an attempt to move the indices Upwards. I know this situation perfectly as I have spent lot of time seated next to my Broker Buddies. When the BBs wanted to push the market with some extra points they just buy odd lots or even some times 100 shares of a particular Share to one of their innocent client's account. I'm not blaming anybody but that is part of the Market behavior or existence I would say. The real Question is do we really consider all this when we in the buying mood ? Once bought we are in such a optimistic mood where we never believe the nature of the market which is UPs & DOWNs both can happen. Actually both should be happen time to time otherwise there wont be an existence or survival for anybody.

The main issue is many investors are running behind the crap shares.. manipulating shares for short gains.. not much worried about the fundamental shares.. not thinking about long time holding ..there for not much run in many good stocks which is undervalue also.

Prince

Prince

Senior Manager - Equity Analytics

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Market is cooling off as expected. If we see a resistance at 6250 - 6255 levels (that's my prediction) its definitely a nose down dive to 5800-5900 levels.

Nowadays technical chart reading has become a crazy stuff since manipulation is unpredictable. But an experienced Investor can easily understand the whereabouts if in a calm mind.Check out the area marked "M" in below chart. Its nothing but sheer manipulation by so called Market-Players and BB s .

Is the Market forming a “Head & Shoulder” Pattern? - Page 3 Chart510

Is the Market forming a “Head & Shoulder” Pattern? - Page 3 Chart510

Prince

Prince

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Market is Greeeeen. Wonderful. But the real quest is that whether the market can go beyond 6250-6255 point in coming three four days or not.

malanp

malanp

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Prince wrote:Market is Greeeeen. Wonderful. But the real quest is that whether the market can go beyond 6250-6255 point in coming three four days or not.

its like a lord kataragama..

six heads and twelve shoulders..

Prince

Prince

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The stage is ready for the market to be in the Green zone for few days. Market RSI ready for a upward movement and the news of reserve rate cut-down will kick-off the market to the GREEN ......!
Now then, still there are two concerns which we see the answer in coming few days.
1. Can the Market pass the 6250-6255 point this time.
2. How many days the Market can be in the Green zone.

Prince

Prince

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Two Crucial Days ..!

MACD indicator in a vital point where today's trading will definitely show the markets direction. If market to be recovered soon, ASI 6250 point has to be broken by next monday. If we see a decline today and monday then its 5800-5900 will be the next level as I foretasted few weeks back.

Braking 6250 point is the only hope but it should be happened with a very vital condition.
The condition is JKH should be maintained around Rs 230- 235 levels.

traderathome

traderathome

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Prince wrote:Two Crucial Days ..!

MACD indicator in a vital point where today's trading will definitely show the markets direction. If market to be recovered soon, ASI 6250 point has to be broken by next monday. If we see a decline today and monday then its 5800-5900 will be the next level as I foretasted few weeks back.

Braking 6250 point is the only hope but it should be happened with a very vital condition.
The condition is JKH should be maintained around Rs 230- 235 levels.

Thanks Prince for reminding us the HS, while you said about TOP HnS..... to fall 5800 I am seeing a BOTTOM HnS to shoot to 8200 once this current slide is over.

Ideally 5800-5700
Preferable - Now or above 6000

GL

m2_yapa

m2_yapa

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TAH!
For the learning purpose could you write on the how you guess it? I am bit confused about above comment.

smallville

smallville

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Budu amboo.. too many TAs..

They say, too many cooks spoil the soup.. So I reserve my comments Wink

m2_yapa

m2_yapa

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smallville wrote:Budu amboo.. too many TAs..

They say, too many cooks spoil the soup.. So I reserve my comments

Mr. Small do not worry I do not want to take ur place even u also can help me in this regard. I am still watching a side ways trend for next 6-12 months at cse. That not tottaly due to TAs. There are local and global factors.

Prince

Prince

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Seems to be market is expecting positive news on ,

1) Navi-Pillais statement on SL - Human Rights
2) Participation of INDIAN prime minister for CHOGM
3) sustainability in GOLD prices

Unfortunately the market is loosing its steam day by day and my view is that the market to be tested thoroughly at 3 resistance points in coming few weeks.

1) ASI 5850
2) ASI 5650
3) ASI 5350

My personal view and the prediction is that we will see the strong resistance and the turn around only in ASI 5300-5400 levels.

Slstock

Slstock

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I am hoping/expecting a bounce back before 5800. Let see . ( if people keep selling well hoping won; help)

Prince wrote:Seems to be market is expecting positive news on ,

1) Navi-Pillais statement on SL - Human Rights
2) Participation of INDIAN prime minister for CHOGM
3) sustainability in GOLD prices

Unfortunately the market is loosing its steam day by day and my view is that the market to be tested thoroughly at 3 resistance points in coming few weeks.

1) ASI 5850
2) ASI 5650
3) ASI 5350

My personal view and the prediction is that we will see the strong resistance and the turn around only in ASI 5300-5400 levels.

LSE

LSE

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slstock wrote:I am hoping/expecting a bounce back before 5800. Let see . ( if people keep selling well hoping won; help)

Prince wrote:Seems to be market is expecting positive news on ,

1) Navi-Pillais statement on SL - Human Rights
2) Participation of INDIAN prime minister for CHOGM
3) sustainability in GOLD prices

Unfortunately the market is loosing its steam day by day and my view is that the market to be tested thoroughly at 3 resistance points in coming few weeks.

1) ASI 5850
2) ASI 5650
3) ASI 5350

My personal view and the prediction is that we will see the strong resistance and the turn around only in ASI 5300-5400 levels.

I agree with slstock. Manipulation is kind of a art to collect more quantities from the panic sellers. This is what manipulators need & this is what they are currently executing . This was created artificially and no point to panic. I personally believe we can expect a sudden uptrend after this scenario. most of the time withing this week or coming September.

@Prince
Friend I'm bit confusing about your 3 resistance points. can you explain about the calculation? How did you finalize it?

Note
We've seen the pivot point violation on 23rd of Aug.
This means, a kind of an unusual deviation from the expected behavior.

Prince

Prince

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slstock wrote:I am hoping/expecting a bounce back before 5800. Let see . ( if people keep selling well hoping won; help)

5800 another 95 points. Don't forget month end is closer and the process of credit clearing (margin accounts) start sooner before the final day of the month this time. Over valued COMB , CTC , NEST , LLUB (for me JKH) need further correction. All bank's figures need a minimum 5% or above correction depending on the Gold exposure, so do the prices.

What will be the Navi-Pillai's verdict on HR issues and the UN's reaction ? I have a big question mark on that point.

Dont say it horrible to hear and negative in investment thinking. Its part of the prudent investing , "Assessing the Risk Factors".

Prince

Prince

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H&S formation is about complete its last phase. Sept-Oct-Nov (marked in the below graph) will under go the last of cycle formation. Infact (for me) october is the month of consolidation where ASPI take one last deep dip closer or beyond 5000 point and make the turn around towards 5400 support which mark the completion of consolidation. Ofcourse before all that we may experience several swing trading small rallys driven by brokering companys who can control the market sentiment to a certain level of degree.
One must be vigilant on following issues which have impact on market sentiment more over macro economic and socio-economic fundamentals.

1) Election results of North Province. TNA will make the win and the problem is their political behavior afterwards could tease the South political stability.
2) Navy pillai's report to UN due on 25th SEPT and its consequences.
3) News is that Authorities has insisted all Banks/Finance company's to mark a Provision for Gold-Lending for 3-Q financial statements which in turn replicate same in the Board , making Bank/Fin sector over valued.
4) Uncertainty in ME specially the issue in SYRIA made uncertainty in GOLD and OIL prices. Analysts predict a further decline in GOLD prices as USA withdrew their plans on a SYRIAN attack. But in an reverse scenario if USA to engage in a strike on SYRIA , GOLD will make new highers which is a positive factor for gold-trapped Banks and Finance companies but the worry is about the OIL price which is forecast to hit USD150 a barrel. In a such situation SL s balance of payment will widened more and depreciated rupee will further deepen the crisis.

Is the Market forming a “Head & Shoulder” Pattern? - Page 3 Chart110

Is the Market forming a “Head & Shoulder” Pattern? - Page 3 Chart110

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Is the Market forming a “Head & Shoulder” Pattern?

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