Tuesday, June 1, 2010

Analysis of Jaiprakash Associates Ltd

 The  stock broke   the  Uptrend line.   Currently  on  Relative Strength   SELL… So  definitely  not  a BUY signal  stock Trim/reduce  you position    on every bounce you see kind of stock.


CANDLE STICK TREND ANALYSIS

·         The  Stock   has  been  forming  a    huge  consolidation  triangle  pattern on the  5 year chart  .
·         This is   seen  as  lower highs  forming on the   one  year  and the   2 year charts.
·          This is  usually  considered    bearish  until it   breaks the   triangle  to the  upside.
·         For  now  the  stock is still closing below the 200  day   EMA,  with the    worst  possible     MA’s  alignment  of   20  day    below  50  day     below  200 day . This is not at all an  encouraging sign  when   looking  for a stock  which   can be  bought.


·        POINT  AND    FIGURE  TREND ANALYSIS

·             The  stock   was   guided   by a    beautiful uptrend  line   since   March  ’09  till   November  ’09.
·        Ever since  the stock  broke the uptrend line  it has   been making  lower   highs  and  lower  lows    which is   not an  encouraging    sign  while  holding a  stock.
·          Advanced  Point and  figure   analysis  suggests that the  stock is  on a    relative strength  SELL    implying that  the  stock is  going to underperform the  whole   market .  i.e.   the stock  losses  more when the  market   has  a  down  day and     gains  very less  when the market has  an UP  day .

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