Technical View : BHEL

Technical View : BHEL 

BHEL MIGHT TRADE BETWEEN 160- 210 OVER A LONG PERIOD OF TIME BEFORE ANY SERIOUS BREAK OUT OR BREAK DOWN HAPPENS

LONG TERM VIEW

Short Term

 

Reliance: The Next Price Target

Technically, How high Reliance can go in near term. Well, Here’s what Charts have to say.

Let us look at the Reliance Chart

As you can see in the chart above: Reliance stock was trading in a range between 900 and 1140 during 2009-2011 time frame. But the stock broke down below 900 in June 2011. Post breakdown- for two years Reliance under performed and remained below 900. 
But with Gas pricing reforms – Reliance seems to be turning around. Reliance has broken out above 900 and if stock sustains above 900 – then stock has potential to rally to 1140 – the next resistance level. It’s likely that Reliance may start trading in the same zone i.e. 900 on downside and 1140 on the upside. The real momentum will emerge above 1140 which seems unlikely before elections.
In near term: Reliance appears buy on declines near 900 and one can look for target of 1140. 

TCS: Rewarding Trades in Leadership Stock

TCS has been in Bull market for number of years now and 2013 has been extremely rewarding for Bulls.

Investment Rule: When stocks are in Bull Market – Pullback to 200 dma is an excellent Buying Opportunity. 
Here’s an excellent example: TCS in 2013

As you can see in the chart above: TCS has pulled back to 200 dma twice in 2013 and both occasions have turned out to be excellent buying opportunity. Just see the gains one would have made by buying a Leadership stock near 200 dma

The examples reinforces the belief that it’s quite rewarding to buy a well established leadership stock near 200 dma. Once a stock develops a Leadership – it’s rewarding to follow the stock religiously.