Silver topped out in April 2011 & has remained in sideways zone for very long time maintaining a very important support at 52165. In march 2013 silver broke this crucial support level significantly & touched the bottom of 38536.
Right now silver is at a very crucial level of 47700 and it doesn't look stable at all, if it tries to move further downwards & break a support of 45820 it will attempt to touch the levels of June 2013.
40765 is another very important support, on breaching this support the market will move lower & if it closes below this level significantly; it will aim for new lows.
Silver in the long run
My video today is about the importance of placing a stop-loss & the points you will need to remember when placing a stop-loss. The video is in Hindi, follow the link to start watching.
Today's three stock picks for the medium term are as below. Do watch the videos in English or Hindi below.
Watch my latest video below on how to choose a time frame for trading/investing. Know the key factors you'll need to keep in mind when choosing the right time frame for your trading & investment needs.
Intuit (INTU) signals entry
Intuit (INTU) has given a buy signal on the 27th June 2013 with the break of resistance at 59.75 & an entry price of 60.3. The chart shows the stock to be volatile, which is a sign of caution for investors as the stock might move in large price ranges very easily, but at the same time being a high risk stock it might also be a high return investment.
Major resistances, as of now, lie at 63.45 & 66.8. If and when the stock closes above its highest resistance at 66.8 & further remains above it, we might see a continuation of the present trend into a long term rally. Support and stop loss lies at 55.5 as of now.
Support – 55.5
Resistances – 63.45, 66.8
Walgreen Co (WAG) has signaled an exit on the break of important support at 48. Resistance is seen at 48, 46.7 & 45, whereas critical support is at 40 breaking which the stock might see much lower levels. We also derive from the charts that WAG is a highly volatile stock which tends to break important supports and as well as resistances frequently. But having said that, the stock still looks to be downwards but any quick reversals are not to be ruled out.
Supports – 40
Resistances – 48, 46.7, 45
Bharat Forge topped out in early 2011 & has remained in a largely bearish phase, until now. The stock has formed a large base and is showing signs of maybe turning bullish. The entry pivot, as of now, is at 244.5 & on breaching this resistance the stock will move higher. Major resistance above this lies at 283 & on crossing this significantly we might see much higher prices on the stock. Stop loss may be placed at 206.5. If the stock slips further from here without a move up & with no breach of 244.5, these pivots will change drastically and we will have to wait it out for the stock to develop a bullish bias again. But for now the stock does look stable & if an up-move begins it will only be at the pivots as mentioned above.
Supports – 206.5
Resistances – 244.5, 283
Apple Computer (AAPL) topped out reaching $700 in September 2012 & is now at almost half its highest price. Looking at the chart now, we’re able to see the stock has entered into a base forming zone since May 2013. Within this area the stock might slip further, stabilize and form a base or quickly reverse providing a medium term investment opportunity or maybe even do a complete reversal, this is all very unsure as of now. But what we know for sure is that this is a candidate of interest i.e. place it in your watch-list now and watch for a future opportunity to arise because the stock shows signs of entering a base formation stage.
After topping out it broke through 535.5 which was a critical support. Further the stock broke another critical support at 455 recently, hence maintaining its downward trend. Support levels if prices fall further are at 385 & a very strong support is seen at 240. Critical resistances are at 455 & 535.5, important but lighter resistances are seen at 483.5, 502 & a very strong resistance if prices rally up suddenly is seen at 590. A buying possibility has not developed yet in the stock, but it is on our watch list and might be an interesting stock to enter if and when it turns around.
Supports – 385, 240
Resistances – 455, 483.5, 502, 535.5 & 590
Forex - USD/INR the new up move
The USD/INR currency pair remained sideways for the last 12 months. Within this sideways zone, from April to May, it attempted to begin a new down trend but failed to breach the critical support at 53 & bounced back from 53.5 to signal a new up-trend.
The new upward move began at a close above 54.95 in the month of May. Important resistances at 56.9 & 58.5 have been breached successfully & quickly. Since the up-move has been quick without any consolidation so far, the stop-loss for this move still remains at 53 but we’ll see this changing rapidly over the coming weeks. The pair is in an upward trend with supports at previously breached resistances & as listed below.
Supports – 56.9, 55.45, 53
Resistance – 58.5
We might see a little consolidation over the coming weeks & then again a continuation of the uptrend.
ICICI Bank on a new up move
ICICI Bank has been in an upward run since a long time, recently in the first week of February the stock has taken a dip & found support at a very important level of 990.
When the stock breached the level of 1070, it again signaled a new upward move. Buyers can hold onto to their positions & watch the resistances of 1155 & 1235 carefully; if the stock crosses these resistances significantly we might see it making new highs. If the stock moves lower, 1070 will act as a very important support & if this level is broken then the security will be range bound.