Anantraj Technical Analysis
STOCK CALL 10 DEC 2012
Call: Short sell stock below 96.95, stop-loss 99.1 (closing basis), Targets 94.5-92.5
Reason: Divergence and Channel supports and resistance.
Comments: Stock has been moving in the Upward sloping channel. But we are seeing a divergence on Daily charts on RSI and Stock. Now, as we can see in the chart that the stock is retracting back from the upward line of the channel. Price has crossed/broken the previous top of the sloping channel, this is a bearish signal. Also, we have seen OBV gives a sell signal. Which makes it a strong case for selling. The stock can go and touch the lower end 92.5 may be in 2-3 days if it breaks then can even touch 86-87.
13th Dec 2012
Anantraj Technical Analysis was spot-on and the stock went down to hit the lower trend line. Now, at this moment generally, a question comes to a trader’s mind whether he should book the profits and get out.
I must tell you firsthand that Stock market is a place of REGRET.
If you Booked now and the stock went more down further. You would regret. ” Oh! I missed the big money, I should have stayed on with my Short position”.
If you have kept this stock and it went up from here and eat your stop loss. You would say ” I should have booked it at my target value. I am not following my rules. Next time I will book it at my target price”.
So, Next time another stock you booked at pre-determined target value and you were happy that you followed your rules. Next day Stock went more down and again the same cycle of regret started.
The answer to, whether to let your profits run or book at your target varies from trader to trader and his strategy. You just need to follow any single approach and stick to it.