Sunday, January 10, 2010

Charts: Tata Elxsi India BSE

As per your request on Tata Elxsi India BSE.

first screen:  weekly
The trend is definitely up but it looks very extended to upside and ready for some pullbacks.  I prefer to buy near the 220 price levels as it presents better risk/reward numbers.  I am also assuming the uptrend will assume after shaking off some weak holders.

second screen:  daily
It is looks like a double top formation on the daily.  I can also see upthrusting action (false breakout) -- price broke recent hight of 268.29 intra-day but could not hold the gains and close near the day's low.  The price bars turn blue for the next two days and the last bar is red in color, prohibiting any buying.

Also, on the day that it try to break new high, momentum was so weak that it stayed below equilibrium.

In a nutshell, I will certainly not buy at this level.  I prefer to stand on the sideline to watch at this moment.

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