<![CDATA[StocksMarket | Metals | Investment | Trading - Opinion by Ravi Chandra]]>Thu, 03 Mar 2016 18:01:35 +0530Weebly<![CDATA[Peabody Energy Corp (BTU) - At the start of a new up-trend]]>Mon, 30 Dec 2013 12:53:53 GMThttp://www.marketlok.com/opinion-by-ravi-chandra/peabody-energy-corp-btu-at-the-start-of-a-new-up-trend
Peabody Energy Corp (BTU)
Peabody Energy (BTU) signaled an entry at the break of 18.75, but faced immediate strong resistance at 19.00. The stock did move above 19, for a little while, but dropped back below it quickly. The life-time high for the stock was made in 2008 at $88 & after that a high of 74 in 2011 & a much lower high of 30 at the end of 2012.

Since the stock has signaled an entry at the break of 18.75 it is still holding important pivots below 19. There is still some resistance at 19, but not as strong as earlier as this resistance has shifted lower to offer support to the price as of now. Minor resistance is still seen at 19 & further resistance is seen at 21.5 & 22.8.
Support for the stock is seen at 18.00 which is immediate but very important. Lower support also exists at 16.5. Breaching both these support prices will mean the end of the present up-trend, breaching the first support i.e. $18 will weaken the stock in the short term, if not end the trend.

It's to be seen if the stock will approach life-time highs within this rally, but as of now the first major target for the stock will be $30 which is also a recent high from 2012. The stock is bullish, as of now, and is also at around the same price point as when the entry signal was triggered with a very small stop-loss, hence making it a good investment option.
<![CDATA[The intermediate trend in IDFC is facing resistance]]>Thu, 05 Dec 2013 10:28:05 GMThttp://www.marketlok.com/opinion-by-ravi-chandra/the-intermediate-trend-in-idfc-is-facing-resistance
IDFC hit its life-time high in 2008 at around 235 & is now at 50% of that at around 112. Two attempts to rally since then, one in 2009 ended with a lower high and another in 2012 ended with an even lower high of 185 in January 2013. The lows however have been haphazard, sometime making higher lows like in 2011 & a lower low recently in 2013.

Looking at the chart recently we've seen a rally from 75 to a recent close of 126, a price appreciation of 50% in about 3 months. But the real question is whether this rally will sustain in the long term for investors. We see the stock facing major resistance in the range of 113.5 to 126.5 with resistance points at 113.5, 120 & 126.5. This zone will prove tough for the stock to move up & even if there is a move above this, then the stock will have to wait & Stabilize above 120 for a long period of time in-order to rally further higher. Any volatile moves above this zone will be not worth investing yet & may be cut short abruptly.

Support levels for the stock are seen at 98, 93.5 & 88.5. The support level at 93.5 is the strongest available for the stock as of now & any price action below this will signal the end of the present up-move & will confirm this up-move to be just an intermediate trend.

The stock will not be a good investment bet any time soon, we see this to be an intermediate trend against the major trend as of now. To change that the sock will have to consistently sustain above he price point of 120. Until then the stock is still in a bear market.
<![CDATA[Volatile & high risk investment stock Jabil Circuit (JBL) is at an important support]]>Wed, 30 Oct 2013 14:23:32 GMThttp://www.marketlok.com/opinion-by-ravi-chandra/volatile-high-risk-investment-stock-jabil-circuit-jbl-is-at-an-important-support
Jabil Circuit Inc. - Daily Chart
As indicated in the weekly chart below Jabil Circuit (JBL) rallied from 2009 to 2012, however this rally was extremely volatile & showed large pullbacks sometimes even breaching major pivots to just turn back again. Overall the stock did gain over 600% but it was really an investors nightmare to remain in the stock. Now after a year long consolidation, the stock again began to move up & made it out of it's top resistance range, but again has started to see large dips recently.

The stock is an extremely volatile investment option & should only be held by investors that are open for large risks in their portfolio. But as risky stocks go it is a multi-bagger.

The stock was headed for a very strong resistance at 22.5 & has since failed to remain over it. It quickly lost base over 22.5 which goes to say that the stock is not a good investment hold as of now especially if it breaches any other lower support levels. Support levels are seen at 21.4, 20 & 19.5. The support level at 21.4 if broken will take the stock to much lower levels & will make it even tougher for it to move back up again.

Resistance is very strong at 22.5, moving over which is very critical & base formation patterns above this price level are necessary for the future of any rally in the stock. There is also another minor resistance at 23.5.

As of now the stock does not look like a good hold for investors unless it can make it above 22.5 & stay above it. The stock also in general is very volatile & risky in nature so best avoidable for the risk averse.
Jabil Circuit Inc. - Weekly Chart
<![CDATA[Alcoa (AA) - Strong break out of resistance]]>Mon, 28 Oct 2013 17:06:30 GMThttp://www.marketlok.com/opinion-by-ravi-chandra/alcoa-aa-strong-break-out-of-resistance
Alcoa (AA) touched its life-time highs in 2007/2008 & had attempted to rally again once in 2009. The 2009 rally was short lived and dragged on into 2011 into a large retracement/sideways zone. Since then the stock has seen lack-luster trading/investment action throughout 2012-2013, while also entering a base formation zone at the end of September 2012.

The base formed on the stock was very stable & the stock has recently rallied out of this base to break important pivots. The break of 8.88 has signaled an entry in the stock. It will see further resistance/targets at 9.53, 10.16, 10.95 & 12.22.

Support for the stock is in the form of a zone from 8.1-7.8. Holding above this support zone will be critical for Alcoa, breaching this zone on a closing basis will mean that the up-trend is broken. Any break below this zone will see the stock heading straight for 6.1 which is the only valid lower support for the stock.

So far the stock does look good, the pivots at 8.1 & 7.8 will be critical for the future of the stock & can be considered as the important stop-loss, as of now for the present trend.
<![CDATA[Is Sterlite Industries ready to shake off the blues?]]>Fri, 25 Oct 2013 17:53:45 GMThttp://www.marketlok.com/opinion-by-ravi-chandra/is-sterlite-industries-ready-to-shake-off-the-blues
Sterlite Industries Daily Chart
After topping off in the end of 2007 at 280 & then again forming a lower top at the beginning of 2010 at 229, Sterlite Industries did not seem to be able to shake off the blues. In 2012 the stock again attempted to turn bullish twice & failed at important resistances as indicated in the monthly chart.

Most recently the stock has shown up-ward moves of over 30% in less than 20 trading days. The up-move so far seems only to be an intermediate trend against the larger downward trend. The base for the stock is not strong at present neither has the stock gained any important resistances nor has it established any strong support levels. Nonetheless the stocks recent move has been strong and worthy of opinion.

So far the stock is facing very strong resistance at 99.25 and the stock will have to gain this price point and stabilize above this to signal a buy for the long term investor. Further resistances are seen at 102.7 & 113.6. The resistance at 102.7 is minor and 113.6 will be the first target for the stock as soon as it turns bullish for the long term from here. The next target would be 124 in the long term i.e. a gain of over 25%.

Support levels for the stock are at 90.7, 81.67 & 75.8. The price zone from 81.67 to 75.8 is very important for the stock as it will act as a very strong support and breaching this will not be very good for the bulls.

Keeping in mind that the stock as of now is still bearish in the long term & bullish in the short term the support levels are the most important to keep track of. As well as the resistance at 99.25 will be very critical for long term investors.
Sterlite Industries Monthly Chart
<![CDATA[Crude Oil (NYMEX) at important support & looking bearish]]>Thu, 24 Oct 2013 17:29:50 GMThttp://www.marketlok.com/opinion-by-ravi-chandra/crude-oil-nymex-at-important-support-looking-bearish
Click to enlarge - Crude Oil NYMEX Daily Chart
Crude Oil NYMEX Daily Chart
Crude oil has largely remained sideways for the last three years since topping off in 2011. The commodity has since twice attempted to break towards the high of 2011 at $114 & failed. Both the attempts to reach 114 are market on the weekly chart. The first attempt, after the dip from the high of 2011, started off with a very weak base and found heavy resistance above 102 & immediately failed with an almost vertical decline to a low of $75. Since then Crude Oil has largely remained sideways until recently in 2013. The second attempt was definitely backed-up with a much larger base, of over a year, but quickly found resistance at the important level of 101. We did see a high of 110 but the breach of 101 showed that the commodity was weakening & called for an exit.

Now Crude Oil still looks to be weak & after failing to hold the important support at 101 it's heading towards some major support levels. Supports for crude lie at 97.75, 95.8, 90.8 & 87.5. From 97.75 to 95.8 is a very important support zone, the commodity will have to hold this zone strongly to continue the up move; else we might see it slip lower quickly. Below this there are some minor supports at 90.8 & 87.5 but breaching below the support zone from 97.75-95.8 will mean that the commodity will find it very difficult to move up-wards.

Resistance levels are at 102.3, 106.6 & 110.7. The price point at 102.3 is very critical for the health of the commodity, gaining this price level & remaining above this will be detrimental to the future of Crude Oil as of now. The commodity does not only have to move above 102.3 but will also have to form a base above this for a few months, then & only then will we see it move towards much higher levels. There is also a minor resistance above this at 106.6 & a larger resistance at 110.7.

As of now Crude Oil looks to be weak & is facing strong resistance at 102.3 & will remain so until it moves and remain above it. The weakening commodity is at it's critical support zone as of now & it will be interesting to watch its price action over the coming weeks.
Click to enlarge - Crude Oil NYMEX Weekly Chart
Crude Oil NYMEX Weekly Chart
<![CDATA[Apple Inc. (AAPL) trending up-wards]]>Mon, 21 Oct 2013 16:07:46 GMThttp://www.marketlok.com/opinion-by-ravi-chandra/apple-computers-aapl-trending-up-wards
Apple Inc. (AAPL) Daily Chart
The first entry signal in Apple Computers (AAPL) was during the first week of August 2013 as indicated on the chart above, we spoke about it in this video - http://www.youtube.com/watch?v=OjTwFcecnXo. We also at that time spoke about a re-entry opportunity in the stock i.e. around the mid of September 2013 when it dropped over 10%. Since then the stock has held its pivots very well, it has moved up somewhat & has maintained its bullish stance, so this means it is still a good re-entry opportunity for new investors with a very small stop-loss at present.

The pivots to watch  have changed somewhat since the last time we looked at it.  New support levels are at 466, 440 & 432. We see the stop-loss for the present trend at 466, below this the other two support levels could hold, but the stock might turn turbulent & loose some steam.

Resistance levels as follows : 514, 550 & 585. The recent high at 514 is a minor resistance, crossing this should not be a tough task for the stock. But it is an important resistance because moving above & closing higher than 514 would make a simple higher high, hence approving the trend again for the first time since August. Further targets and resistances are seen at 550 & 585. The resistance at 585 is the more important resistance & we might see the stock struggling for a while at this price point. Breaking through 585 & closing over this price significantly would be highly critical for the stock to remain bullish in the future.

The stock has signaled a bullish move & has remained largely sideways to up-wards for the last few months, as of now we do see the stock to be bullish & AAPL is still a very good re-entry opportunity with a stop-loss at 466. The stock at the present prices has a very low opportunity cost for investors.
<![CDATA[After life-time highs Gold is at a critical support]]>Wed, 16 Oct 2013 17:23:16 GMThttp://www.marketlok.com/opinion-by-ravi-chandra/after-life-time-highs-gold-is-at-a-critical-support
Gold took off at the end of July, right after the break of an important pivot 28288 and headed for a very critical resistance at 35074.
We had covered this in our older video on gold here - http://www.youtube.com/watch?v=KlOwXyi0duc

Coming to the present, Gold has since then failed to cross over this critical resistance at 35074 even after making a new life-time high. After failing to sustain at higher levels we took an exit signal at the break of support at 30491 and in the last trading week we've seen the precious metal slip further lower, recently closing at 28441.5.

We're still out of Gold & would suggest investors to stay out for a while until & unless Gold does not breach important resistance levels. Strong resistance levels for Gold lie at the recent high 35074, but more importantly at 32735.5 & 31828.5, minor resistance lies at 29385. Since the commodity is moving lower, as of now we need to look at support levels which are at 27875 & 25635. Breach of support at 27875 would not be a very good thing for the commodity; as it will weaken further & the lower support mentioned below that at 25635 is only a weak support.

To move up and continue the bull run, Gold will have to sustain above the recent closing price & well above 32735. The zone between 32735 & 27875 will act as a sideways zone & Gold will have to break above this to be ready for investors to enter in it again.
<![CDATA[USDINR(Indian Rupee) - Update on the trend, new supports & resistances]]>Fri, 20 Sep 2013 18:49:56 GMThttp://www.marketlok.com/opinion-by-ravi-chandra/usdinrindian-rupee-update-on-the-trend-new-supports-resistances
In the video I'll talk about the USDINR Forex pair or the Indian Rupee. The Rupee took a large tumble recently, we're going to take a look at the USDINR pair chart & give you an update on what's happening with the trend that we've seen recently. I'm also going to take a look at some of the major/critical resistances & supports & name them for you in this video.
<![CDATA[A re-entry opportunity in Apple Computers]]>Mon, 16 Sep 2013 04:19:18 GMThttp://www.marketlok.com/opinion-by-ravi-chandra/a-re-entry-opportunity-in-apple-computers
A re-entry opportunity in Apple Computers
In this video I'm going to look at Apple Computers (AAPL). The last two times we looked at Apple Computers, the first time we had returns of around 300% & the second time more recently we had returns of over 60%. Now Apple Computers seems to be coming back into the game & we're going to talk about how you can enter this stock. There has been a recent drop of 10% in the price, which is actually good news because it might be a re-entry opportunity for investors who've missed out over the last 2 months when we had advised an entry in Apple. Do watch the entire video to find out how to re-enter in Apple Computers & also know the critical supports & resistances to keep track of.