Jaiassociates Strong Resistance At 77-78
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Jaiassociates strong Resistance at 77-78

Let us see some Technical Analysis on Jaiprakash Associates today . Looking at daily charts for last 1 yr , We can see an extremely strong Resistance area around 75-80 (77-78 to be precise).

Thereare 3 levels for trend lines which are conforming that resistance level. Look at the following chart to see in detail , click to enlarge the chart .





You can see that 3 trend lines at different levels are conforming that point (77-78) as the resistance point .

Long term trend line is very strong trendline and thats the most important one .

Medium term trend line and short term trendlines are also important because they also put some weightage on the long term resistance point . This chart shows the prices Monday , till Mar 16 ,2009 .

Today on Tuesday , Mar 17 , 2009 , markets have corrected a bit after 3-4 up sessions in this bear market rally . and JP Associates as expected changed there direction downwards and closed at 74 after opening at 77 .

How should it be traded now ?

BUY if :

- Global markets are rallying and sentiments continue to be good .
- Prices cross 80 and sustain atleast for 2 days .

Stop Loss : Stop loss should be little below the 77 point , around 75 .


SELL if :

- Global markets rally comes to an end and over all sentiment turns negative .

Stop Loss : SL at max 79 or as per your trading money management rules .

Notes : A lot depends on overall markets sentiments ,be in syncwith markets direction . Keep strict Stop loss . Appreciate and expectif markets do something random and do not follow technicals estimates .markets are supreme , not TA .


There is an article on "Should you Invest in Equity Directly" on my blog . Read it if you want .

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