Jet
Airways rallied 9% today to close at 232. Does that mean stock is ready
to rally? Well – just look at the chart and you will understand why the
rally means nothing
Jet Airways is a sinking stock
As you
can see in the chart above: Jet Airways stock has declined from 650 in
May 2013 to now at 232 by Feb 2014. It’s too dramatic a decline and
chart has been so badly damaged in this fall that any rally will invite
sellers sooner than later. Technical turnarounds do not happen by one
day bounce. Sharp rally can sometimes break the downside momentum but
that is no guarantee of up move.
Why stock was up 10% today?
Competition
Commission of India’s (CCI) approval for purchase of 50.1 percent stake
in Jet Privilege Private Ltd (JPPL), a customer loyalty programme unit
of Jet Airways. But this news has been there for months. The news may
offer some floor for time being but it does not change the operating
environment of the company. Also, remember – few days back Federal
Aviation Administration (FAA) has warned Indian airlines on safety
issues and has put a ban on new flights to US. Things are tough and
today’s rally can only be perceived as a relief and not a game changing
event neither fundamentally nor technically.
"We
don't only tell you what stocks did, we tell you why, and we tell you
where stocks are headed next. How? By tracking the psychology of the
markets, tracking patterns and indicators that reveal where stock prices
are trending, giving us high probability trade opportunities."
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You run
the risk of drowning. The same happens with the stock that tries to
rally against the trend. It eventually sinks to New Lows.
Have a Look at one such stock: Bank of Baroda
Here’s the weekly chart
As you
can see in the chart above: Bank of Baroda began its downtrend in 2011
and since then every attempt of the stock to rally against the trend has
resulted in fresh declines. The stock is a prime example of why one
should never try to hunt for a bottom in a stock that is in downtrend.
Reason: It’s not worth it.
Trend persists longer than one can imagine
Power sector
has suffered a lot in last five years with all sorts of problems from
project clearances to coal availability to indecision on tariffs to
poor health of SEBs.
Tata Power Company is
India’s largest private sector, integrated utility company. The company
has an installed power generating capacity of about 6000 MW. The
company through
its subsidiaries and joint ventures has a presence in power
transmission, distribution and trading. The company’s health is the best
way to gauge the health of the Power sector.
Well, Pictures speak for themselves. Here’s the Tata Power stock Weekly Chart
Well as
you can see in the chart above – the stock has witnessed waterfall like
decline. From Highs of 145 in CY2010, the stock has come down to 72 and
still there are no signs of revival and turnaround.
Well, How
can a sector or a leading stock in a sector make a bottom when
political noises are for free power and no tariff revision. Add messy
coal policy and we have a total recipe for disaster as far as Power
sector is concerned. Tata Power stock will continue suffer as long as
these voices remain loud.
"We
don't only tell you what stocks did, we tell you why, and we tell you
where stocks are headed next. How? By tracking the psychology of the
markets, tracking patterns and indicators that reveal where stock prices
are trending, giving us high probability trade opportunities."
We
invite you to become Premium member of the website and get access to
all our recommendations. WE just charge 2500 rs/pm .To join us plz mail
us to trendzofmarket@gmail.com
Here’s one breakout that seems to have shocked everyone with its vertical up move
The Stock is Aurobindo Pharma
TRENDZOFMARKET COVERED THE STOCK AT 195 AND 205 TO BUY THIS STOCK FOR MEGA GIANS
HERE IS MY BUY CALLS FEW MONTHS BACK
http://trendzofmarket.blogspot.in/2013/10/aurobindo-pharma-stock-can-test-280-300.html
SEE WHERE THE STOCK IS NOW HIT 502 TODAY MORNING STUNNING 240% MOVE IN JUST 3 MONTHS TIME YOU CAN GET SUCH CALLS ONLY FROM TRENDZOFMARKET
Here’s the Weekly chart of Aurobindo Pharma
As you
can see in the chart above: there was a well defined resistance of
201-205 before October 2013. The stock then broke out above 201-205 and
resulted in vertical upmove. From levels of 205 – the stock zoomed to
490 i.e. 1.5x in less than 4 months. That’s what breakouts do if you
catch them at right spot and stay with them little longer.
Remember, all break outs do not take vertical path. There are many that consolidate for weeks and months before taking off.
"We
don't only tell you what stocks did, we tell you why, and we tell you
where stocks are headed next. How? By tracking the psychology of the
markets, tracking patterns and indicators that reveal where stock prices
are trending, giving us high probability trade opportunities."
We
invite you to become Premium member of the website and get access to
all our recommendations. WE just charge 2500 rs/pm .To join us plz mail
us to trendzofmarket@gmail.com
