Aban Offshore - Rectangular Pattern Break-Out

Aban offshore has broken out of a Rectangular Pattern on Friday with high volumes & looks set for a target of 500-506 levels.
Rectangular Pattern is a continuation pattern & it took 3 months for the pattern to form & a breakout was seen on friday, October 28th 2011.
8th November 2011, would be the Q2 results of ABAN. Q1 results were bad, the Company posted a net loss of Rs. 21 Crores compared to a net profit of Rs. 24 Crores (Q4 results of FY'11)

Daily Chart of Aban Offshore

CMP: 425
Target: 419+(419-332)=506.
Initial Stop Loss: Closing below 419.
Time Frame: Maximum 3 months.
Indicators: MACD has turned into buy mode. RSI is above 70 indicating strong strength in the movement.
Futures - On 28th Oct 2011, Friday the price increased 5% & with Increase in Price, there was addition in Open Interest too - Indicating built up of Longs.

Update 2011-Nov-18: On Nov 15th 2011, the stock moved below 419 & hence the pattern got invalidated & the Stop loss also got hit.

May The Trades Be On Your Side

Happy Trading / Investing. Would be glad to receive comments from all on the views expressed.

Keep a Stop Loss in each trade you Initiate.

Arvind - 05-Oct-2011

Arvind Mills - A Stutter Before the Next Move

Arvind Mills after a good run up is facing resistance around 100-102 levels & on wednesday there was a sell-off to the magnitude of 5%.

Arvind Ltd - 1 Year Daily Chart

A view at the chart would show you how steep the climb was & by doing so it has formed a Rising Wedge sort of pattern. As it has broken down of the steep trendline the targets for it now would be around 85-80 levels. This would get invalidated with a move above 102 levels on closing basis.
The stock is still in an uptrend & shorting if done should be done with utmost care & strict stop-loss levels.
Indicators:
MACD has just turned bearish.
RSI started to come down from the levels of 85.


Fundamentally with Dollar strengthening against the Rupee, would work well for Export oriented companies & their revenues & profits might show a big jump. 


Bottom Line: Seeing the Candlestick pattern & multiple resistances around 100-102 levels. The stock is most likely to come down to levels of 85.


Market Wisdom: A stock that has rallied a lot, usually takes a breather before making its next move.


Happy Trading / Investing. Would be glad to receive comments from all on the views expressed.

Bharti Airtel - 23-Sep-2011

Bharti Airtel - Head & Shoulders Pattern

Bharti Airtel after reaching 445 levels has fallen down along with the broader market & now has made a Head & Shoulders Pattern. Target for this pattern comes at around 320. This pattern would become invalid with a close above 380 (Full candlestick formation above 380)

Bharti Airtel 1 Year Daily Chart

Market Wisdom: Usually when Markets are in downtrend, Stocks breakdown & more often than not a bearish pattern like a Head & Shoulders plays out. Keep a close watch on the stock.

Update: The stock did go to 345 levels but recovered quickly. So in actuality the H&S dint pan out as expected.