Stocks with classical patterns.

Classical technical analysis patterns are alive and kicking. On June 8, we gave a buy call for Reliance Capital in our newsletter. (The newsletter is available to newsletter subscribers as well as Trend Analyzer software users).
The pattern was an Ascending Triangle, a classical Edwards and Magee pattern. Here is the chart that was given:

Slowly but steadily, Relcap did go up, closing at 720 today. (Four trading days have elapsed).
Learning is a continuous process. In keeping with this idea, here is a video that shows “How to Tell When a Market is Oversold”
Click Here to find out How to identify oversold markets

Nifty closes above 5150 resistance

Today is the third day of rally, with the Nifty breaking out of the 4970 – 5150 trading range, closing at 5198, decisively above resistance.

The Index has made a pattern of higher highs, higher lows, which is the sign of an uptrend. The Nifty had earlier broken down from what appeared to be a rising wedge. A rally has now brought prices near the apex of the wedge (5200), which is the make or break level for the wedge.

How do we trade: Assume that the trend is up. Wait for dips to go long. If this is a bull trap, which means that there is a false breakout, then traders will be confronted with losses, hence our suggestion to wait for dips before going long.