On Tuesday, UK Construction PMI increased from 54.6 to 56.8, which indicates growth in construction activities. PMI data is a leading indicator of economic activities. This is very positive news for markets and this rally should continue for a few more days. Just note it down, recovery is in the UK. Dow hit the high of 28355 on the news of the recovery of President Trump and what changed in few hours Dow Jones Industrial Average Index starts falling heavily from the top of the day. Dow made a low of 27727 from the day high of 28355 after the statement of President Donald Trump, “there should not be more talks or bargain on Stimulus packages.” Many industries like Aviation which are badly hit in this time are very hopeful of big announcements by Wednesday. From that low of 27727, Dow started recovering the same day. Silver and gold also dropped from the high of the day on Tuesday. Silver made the high of 62365 and dropped on Monday as well as Tuesday also formed the same top of 62365, which is the first resistance posted on Monday morning. It is the perfect formation of Candlestick Tweezers Top. On Monday as well on Tuesday, both days’ high is a dot at 62365. This formation of Tweezers Top indicates a sell signal until and unless mentioned top of the previous 2 days is not breached, means 62365 is the stop loss. Is Tweezer’s top or the bottom pattern reliable? Yes, it is! For the second opinion, one can refer to the oscillators or the other candlestick patterns. The reliability of Tweezers’ top or the bottom is the same as of double top and the double bottoms. These tops and bottoms can be used as make or breakpoints or trend deciders or reference points.
TCS announces a buyback plan of 16000 Crs. The board of Directors approved the buyback of equity shares at a price of RS. 3000 per equity share from the shareholders of the company on a proportionate basis. In this buy-back, 15% is reserved for small shareholders holding shares worth RS. 2 Lac. On this news, TCS jumped almost 5% on Thursday morning and registered a 25% gain in the last 9 trading days. Nifty50 also reached a high of 7 months. Nifty50 made a low of 10790 on September 24th and on October 8th ’20 hit the price of 11880; a 1000 point rally in 9 trading days. Nifty50 achieved its third target of 11890 successfully In these 9 days HDFC Bank moved from 1025 to 1180, a gain of 15%. IndusInd Bank registered a gain of 40% in the last 9 trading days.
Wipro is also planning buy-back of its equity stock. The same may be finalized and approved oncoming board meeting fixed on October 13th ’20.
Donald Trump advocates the aid to Airlines. In the last 2 days, Dow rallied from the low of 27727 to 28400 almost 700 points. The last 9 trading days of DowJones were very volatile, but if look at the chart and oscillator – Stochastic trigger the buy signal, and to date profit booking or the sell signal has not emerged.
What is Stochastic?
To know the mathematics of Stochastic, how the values of %k and %d are formed, and how stochastic work looks at the following link.
George Lane discovered stochastic formula by using percentage k and percentage r. He worked on many other mathematical equations also from percentage a to percentage z, but adopted %k and %r. Mr. Larry William worked on percentage range (%R) and built the oscillator successfully and proved many times the accuracy of the indicator. For further details can visit the following links:-
what is William percentage R and how to form the mathematical formula?
Will like to share a small story here, one of my friends asked can he buy Advanced Enzymes somewhere near to 280, and what would be the target? The answer was 383 is target and book profit without fail and today stock touched the level and dropped heavily to 343 in 3 hours only. He called again and told that he sold at higher levels and bought it again at 363 and stuck. Is this the story of all the investors? Once the target is achieved investor has booked the profit and even if want to reenter the same stock, look for the support or reversal or at the further breakout.