Thursday, October 28, 2010

Vijaya Bank :Is due for correction!

Vijaya Bank was the one of those banking pack which was left outta the rally. This scrip is now show a rise of around 30% increase in the past 3 months.If the price falls below 103, the downward trend would be confirmed. So the SL should be 103 and profits should be booked at this level.

2 comments:

  1. Does'nt it mean that when the lines which you made on the chart are converging, it may move eitherways- up or down?

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  2. The formation of wedge is indicated by the narrowing down of the trading range. The narrowing down means a pressure of the current trend. Thus, a Rising Wedge in this case means pressure on the upside movement of the stock. Thus, this pattern is supposed to have a bearish bias. Wedges are some what similar to symmetrical triangles, the only difference being they have a bearish/bullish bias.
    So, a rising wedge indicates a breakout from the trading range , and statistically 69% of the breakout would be on the downside.

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