CESC - Does it makes sense to buy on 8 March, 2010 - Part 2

Looks like the luck smiled.. As we were looking for, the market turned out to be the way we wanted. The market saw a big rally with most of the stocks going up along with sensex.

The indications that were expected were staring at us right through the chjarts be it the price movement above the 20 period (30 minutes period) moving averages, or the price bars touching the upper axis of bollinger bands. Equally clear was the sign from the 'Directional Indicators'; wherein by end of day we saw a huge crossover of +DI over the -DI...

All we have to do now is wait & follow-through, how far the price action goes.

CESC - Does it makes sense to buy on 8 March, 2010

The chart of CESC is beginning to show signs of a turnaround with various factors indicating that it could be the right time.

The price bars have already crossed-over from the lower Bollinger band to the upper band. The only sign that remains to be shown by charts is the bars to touch the upper axis. That should happen in 2-3 days if it happens to be an uptrend

The other sign of a buy comes from the analysis of Directional indicators. Although the ADX has fallen below 10, but thats because there has not been any trend and the stock has seen continuous whipsaws. The positive directional indicator is crossing over the negative directional indicator.

Once both the signs viz., the conclusive crossover of +DI happens over the -DI; and the price bars touch the upper axis of Bollinger Band, then it should be a good place to get in. Lets wait & watch, how it behaves

Disclaimer: These are my personal views & readers are free to comments.