Mcdowell-n is trading at trendline resistance, Selling is more likely

by Bhaveek Patel · 3 comments

in Short Term Stocks

Stock has been the best out-performer in F&O stocks, as its has given more than 90% return in last 3 months. But as the monthly chart suggest me stock is near the trend line resistance which is around 1290 – 1300 region. So some selling in this stock is expected in the near term, also stock has shot up very sharply so some profit booking in form of selling will soon be seen.

Mcdowells-n trendline on monthly chart

My trading recommendation: Short sell MCDOWELL-N at 1300 level for a positional target as 1200 and 1135 level, stop loss will be based on weekly candle closing above 1340 only. Be careful as trend in this stock is strongly up and we are trading against the trend so extra care must be taken. Article published on 1 October 2012.

Mcdowells-n Fibonacci retracement on daily chart

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{ 2 comments… read them below or add one }

1 babuu

sir, as you said “Be careful as trend in this stock is strongly up and we are trading against the trend so extra care must be taken”
how to trade this? how to take that extra care? please explain more? so that it will be more helpful for all of us as you are the master of TA…….

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2 Bhaveek Patel

Here, extra care means to keep a strict stop loss and watch the trade carefully.

Please don’t use abusing words, You know what I am talking about.

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