Technical Analysis of ITC on 25 Jan 2017
This is no buy/sell recommendation - just a trial to see if
Technical Analysis (works to an extent) in Dhaka Stock Exchange.
I usually do not trade IPOs. Especially one with PE ~ 100!!!
I do not have data about its Fundamentals.
Only the Technicals. It had created support at 45 – a price I
like for entry. However, recently it has turned up from 46 and then from 47.
This got me interested.
If it can cross Resistance at 55, then 65 is likely in the first run
. . .
I thought (optimistically due to the crazy Bull Run) that it
would cross 55 at one go!
However, it failed at the first attempt and retraced to 50 Fibo
Level (51.4) with a nice candle. It could still drop to 50.4 – but if we get a
Green Candle tomorrow, it could be the start of another run to test Supply at
55 – before going forward (there is significant up potential).
If it is a red candle, stay away - keep cash to buy items later at a lower price.
Tight stop loss would be 48.9
Technically 45 is a safer entry price . . .
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