LIC Housing Finance Looks Strong with Convergence of 6 Support Lines

LIC Housing Finance Daily Chart Technical Analysis

LIC Housing Finance looks strong to take a long-position (buy).

Why?

When you see the chart I have put up, it looks complicated and cluttered.  I avoid such clutter on the charts, but this time the clutter is there for a purpose.  Read further to know why.

LIC Housing Finance has fallen since making a Double Top in May-June 2014.  

Currently, it is showing strength as there is a rare confluence of 6 different support lines.  I have marked them S1-S4 for convenience, and changed the colour / format of 2 addl. support lines.  They are as follows:

1. S1 (1 Month Old Support)
2. S2 (3 Month Old Resistance Turned Support)
3. S3 (4 Months Old Support) 
4. S4 (3+ Years Old Support - Black Line) 
5. 50-Day SMA (Red Line) 
6. 23.6% Fibonacci Retracement (Dotted Line)

Moreover, the RSI is in the 90+ 'very strong' zone.

Candlestick of the day is Dragonfly Doji, also a reversal pattern indicator.

The next lines of Resistance this share should encounter as it rises ahead... are 336 and 350.  

Never trade without a Stop Loss, in this case the SL can be few ticks below S3 (prob @303).

Feel free to comment with your views/questions & I'll be happy to respond.

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LIC Housing Finance Daily Chart Technical Analysis

Hero Honda Falls as analyzed: Gap Down

Hero Honda Daily NSE Stock Chart Technical Analysis:

In my Friday post, I had analyzed that Hero Honda will fall on Monday and going short with a target of 1800-1820 on market open is a good idea.  

The market today opened at 1841 and fell to 1815 before closing at 1838.  

Market Outlook: The price will fall further tomorrow but the fall won't be as deep as today.  

If you did not exit the short position between 1815 and 1820 today, keep an eye on the price tomorrow and plan to exit for a short term profit.  

Depending on market tomorrow, I might hold on to a small quantity of the stock to sell even further below, if tomorrow I get confirmation about a possible fall on Wednesday.

Technical Indicators:

• Not exactly, but its close to being a dragonfly doji today.  It is not too significant but denotes that tomorrow the slide in price will slow down.  

• Volume has watered down which also shows the price wont crash tomorrow, will only slide down slowly.

• 250 day moving average is a line of support, around 1778 levels.

NIFTY Approaching Triangle

After a gap down and 2 more days of falling, NIFTY finally showed up a positive sign - a Dragonfly Doji.  Moreover, this dragonfly doji comes with a strong buying interest in the market, with volume at one of its highest levels in the past year.  

Based on which way the NIFTY breaks the triangle, we will determine what position to take. The moving averages are also flying apart, denoting the continuation of a choppy market for some more time.

Kinetic Motors Could Rise Again

Kinetic Motors stock on NSE is all set to rise again after a small correction. 

We can see a Bullish Dark Cloud Cover Candlestick on 21 Oct 2010.

On 22 Oct 2010, the market opened gap-up and there is a Dragonfly Doji Candlestick.

Moreover, today is accompanied with good rise in volume as well.  The other indicators are also positive.

I am willing to go long on 24 Oct 2010 market opening if it opens higher, which seems very likely.