How r u all? its so long I have blogged here. In chat box people take funemployment. So let them enjoy. People who want to learn serious technical analysis drop in here . From here on will post some stock charts. Try to learn something and feel free to shoot your doubts.
Here we will discuss about hammer candles. Here our first 2 candidates. One is Hindustan Zinc and other one is ICSA. Lets see how to play that. Here I will employ Fibonacci with those candles.
Hindustan zinc ltd made a perfect hammer yesterday with piercing 50% fibo retrace and getting resistance around 61.8% fibo level. so how I play this stock here is entering a long above yesterday's high (1081.95) or 61% fibo level which coincide with that. having a stop just below 50% fibo level to target recent swing high. One more safe strategy here will be waiting for a close above 61.8% and playing next day. As we got a hammer with good volume we can go for first scenario.
Next stock is ICSA here also we got a perfect hammer around 38.2% retrace. so is it wise to take a long in stock which made lower high higher low pattern? hmm why not? lets take away the old style of technical plays. In this chart we can witness that price getting magnetized around 38.2% fibo level, which is a strong sign of price acceptance and we got a hammer here why cant we try a long with 125 as stoploss? hmm looks you people still not convinced. only way is to track the stock in coming session. lets see the result..
Ok guys track this two stocks and gimme the feedback.
Happy trading !!!!!!!!!
Jay
