Tech Talk: Chart Patterns of Interesting Stocks

We go through the five stocks we discussed last week and Deepak introduces four new stocks in a quick technical take. None of these are large caps, and this video is for education only, not advice.

(7 Min, Video)

Recap

Gravita: Exited with a stop loss hit after the stock went below the 20 day average.

REC: The Rural Electrification Corporation stock destroyed itself, breaking down below the 20 and 50 day averages on the same day. Exited with about a 8% loss as the stop was hit.

FirstLease: Consolidation on low volume. A flag on the stock which could signal a breakout upwards. Does not hit stop loss, so we continue to hold.

Camlin: Stock's at about 71.7 today, and again, has a flag and consolidation on low volume. The stock hasn't hit the tight stop of of 68, which is why we hold.

GujFluoro: Stock is sticking in a zone and consolidating. The stop loss was in the 330s, which the stock hasn't gone near - it is still around the buy price and around 377 today. We continue to hold.

New Stocks

Uflex: I tweeted about this a few days back, buying it at the 161 levels, as the level coincided with two points. One, a key resistance level (earlier high in the past downtrend) and a break would signify a change in trend. Second, the 78% retracement level consolidation - a break above would usually mean going all the way to the 61.8% which was 196. The stock's now at 208, and while I wouldn't buy here right away, the stop stays at 196. Return has been about 25% in a month or so.

TTKPrestige: One of my favourite picks, fundamentally and technically. The most recent buy was around the 2000 levels and the stock's now touching 2400, with a 20% return in about 2 months. Stock sticks above the 20 day, and my SL is at the 2000 levels (the 50 DMA). But if you want to enter now, you have to pyramid in and go carefully.

Pidilite: This maker of fevicol and mseal has been interesting for a long time and has stayed below the October highs. I like the stock (okay, I like the ads) and have been waiting for the 159 levels to be crossed. Did that on Monday on reasonably large volumes. So I'm in. The stop has to be closer, at 145 or a trailing stop of 10%.

Venkeys: They sell chicken. They have a P/E of less than 10 (the stock's at 740 today and the 9 month trailing earnings are Rs. 61 per share). But it's a commodity stock so it will go up and down. No debt, though, and the stuff it makes is always in demand. What is interesting is that the stock just broke above another key resistance level on HUGE volumes, and broke through the 200 day as well. In with a stop loss of 20% (so smaller position size)

(Yes, I should have bought when the uptrend began at 570. The flag pattern since then has been great!)

Let us know what you think!

Disclosure: Long everything (except those I've mentioned I exited)

Comments

Awesome analysis. Thanks a

Awesome analysis. Thanks a ton for this post. Your commitments to stop-losses are commendable and inspiring. :)