3 Great Trading signals in LT(Larsen & Toubro) Technical analysis training.(16 December, 2013)

This call was given at 2pm on 16th december,2013.

For the past 5 days market has been moving in a downward direction, surrounded by forth coming news like WPI, FED Tapering, Inflation figures, FOMC Meeting and so on. Also adding to the fire elections is adding oil to it.

In such kind of scenarios to give a technical positive(upward movement) call is extremely difficult. When we train our students in our technical analysis course( click here to know more) and booked profit @ 1200 on Monday 09th December 2013.

We clearly advice our students to move with the trend of nifty/sensex. But then there are exceptions and LT is one such exception.

There are three great technical indicators which are indicating buy calls in LT.

Indicator no.1- the stock is trending near a VERY VERY significant and strong trendline. Below is the snapshot from our ODIN Trading Terminal. it has tested four times this trendline and today for the fifth time it is near by. 

Indicator no.2- This stock was down for the past four days but the VOLUMES ARE DECREASING GRADUALLY. A decreasing volume in a downtrend indicates that sellers are decreasing and buyers are increasing. In other words any moment the stock can turn back.

Indiactor no.3 - If you read indicator no.2 we said that the stock can turn back any moment. But when is this any moment? - when we get a candlestick confirmation. If you see todays and yesterday trade there is a inverted hammer and a confirmation. Below is the image from the ODIN Trading Terminal. 

We expect the target of 1140, stoploss 1040 and you can enter the trade at 1060. Please note we are entering the trade early so keep extremely strict stoploss. There is no duration for this call like 1 day or 1 month, we either hit our target or we either exit with stoploss.

Please Note This confirmation signal taken at 12 afternoon, 16,December 2013. So it is possible that the confirmation candle can change and making this trading call null and void. We at trading kamai.com believe in entering the calls in a early stages. That means high risk is also attached to it. 

If you want to learn technical analysis you can start with this video http://www.youtube.com/watch?v=TAVFB9e7LME

Please read our disclaimers before investing http://tradingkamai.blogspot.in/p/disclaimer.html