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Sunday, November 25, 2012

Your chart based query on Zicom and Shilpa Medicare!

A valued reader asks a query on charts for Zicom and Shilpa Medicare:

Question: Just wanted to cross check with you on chart patterns which I am looking at the charts correctly , please do reply:
1. Shilpa Medicare --- 310 breakout point of a inverse Hn s on weekly time frame with volume action target high 400 ish .
2. Zicom security ------ Rounding bottom on weekly at 90 with volume action , Target HIGH 149ish?


Zicom Security
Zicom has had a beautiful runup from lows of 26 to 92 currently. With the last day candle being a strong green candle with high volumes, the dream run may continue for long. However, I would just caution about the nearby resistance levels. Pls look at the chart below:

The nearby resistance levels are at 95, crossing which, intermediate resistance at 108 and at 128.
I would recommend partial booking at these higher levels if someone has had a good profit by now. 140 and 164 are next resistance levels. Support is at 68 and 52 levels.
149 is definitely possible in next few months with the strong dream run that's visible on charts right now!

Shilpa Medicare
I would suggest some caution on this one. Shilpa has also had a good run, doubled from lows of 135 in past 1 year. Looking at EoD charts, last candle is a Doji or uncertain kind of candle with average volume. (Unlike strong green candle for Zicom).

If you see the charts, 2-3 times price has retreated from these levels, so will need a strong push to break 320 levels. Support is at 295 levels.
Next resistance level is at 395, so that's maybe maximum it can reach for now.
Head and Shoulder pattern typically doesn't work on Indian market. When a pattern becomes too common, typically large market players try to fade it and trade opposite to it. So pls don't rely on HnS for Indian markets.
Also Daily charts are better to look at for trading than Weekly charts. Weekly is good to gauge the larger trend, but daily is good to determining levels.

Hope this helps.
Pls send your queries to and we will try to answer as soon as possible.

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