Market Analysis With Megh Mody

Many traders and analysts are not clear for the trend in Gold, but looking at the current chart of Gold prices will now move in a positive direction over short term. We have been continuously watching this precious metal and came to the conclusion that prices will start its up move. This was only possible with the combination of simple technical analysis and advance analysis. The following excerpt is been picked from our daily publication “Commodity Gannalyst” where we had mentioned its crucial support and resistance levels. Gold 1 st Month Contract Analysis From the above chart we can observe that after a sharp fall from 32500 prices came down steeply and found support near 25000. Prices managed to protect its low of 25000 and bounced thus giving and double bottom break out. After the break out prices managed to stay above it which opens positive possibilities and started consolidating by movi...

IDFC was one of the worst performer stock but what was the signal that forced the stock to change the trend? The answer to the above question was only possible with help of advance technicals like Gann Analysis and simple technical analysis such as channels, Fibonacci retracements etc.  IDFC Daily Chart   Analysis:                             From the above daily chart we can observe that prices are moving in a down trend but in the 1 st week of June prices showed a reversal pattern. We have also used price and time grid to find out the change in trend. Price and time grid is very important not only to find out change in trend but also helps us to determine important support and resistance levels.

Hindalco:  Catching top Using Price and Time While many traders were bullish in this metal stock as it was one of the out performer, but using Gann analysis and simple technical analysis such as channels, Fibonnaci retracement etc, it was easy for us to catch the important top in this metal stock. The below excerpt is been picked from our daily publication, “The Equity Gannalyst” where we have used price and time grid to identify the top. Hindalco Daily Chart: Analysis: From the above daily chart of Hindalco, we can observe that prices after making a low 87 moved higher and in a channelized formation and moved till 50% retracement of the previous down move (135-87). 50% is one of the important retracement level as it has the tendency to reverse once from that level. Prices made a high at 112.55 and reversed which was 50% retracement and also one of the vibratory numbers placed at this level from where prices reversed and moved lower and even breach...

Infosys : Predicting through Gann Analysis Infosys fourth quarter net profit rose slightly higher-than-expected 3 percent year-on-year (1 percent quarter-on-quarter) to Rs 2,394 crore, helped by higher other income and lower income tax expenses . The above result was declared on 12th of April and as a result we saw the 20% fall on single day in this stock though the results were positive. Is this fall predictable? Using Technical analysis and Advance technical concepts such as Gann Analysis it was easy for us to predict the fall and to predict future movements of this stock. Infosys Daily Chart Analysis: As seen in the above daily chart of Infosys, we can observe that prices have made a double top formation and gave bearish break out which dragged the prices lower soon after results were declared and the stock tanked 20% on that day. The stock price further moved lower and made a low of 2186 in late April 2013. In the month of M...

Hindalco is one of the outperformer stock as compared to other metal stocks such as Jindal Steel, Tata Steel, Hind- Zinc etc. The reason for such outperformance is, it made an accumulation pattern at the level from 86-94 and gave a bullish break which took prices till 113 levels made on 16 th May 2013. The level of 113 is a very crucial  where its previous pivot is placed along with 50% retracement of the previous down move (137-86) and also 200 (SMA) is placed at this level. Now for prices to move in a positive direction it need to take out 113 decisively. With the help of Price and Time grid, we can observe that prices are currently quoting near the intersection of the grid which is suppose to be a crucial resistance. Please understand the grid helps us to identify the important pivots which can be under formation or its in place. The overall view for Hindalco is positive as the stock can move till 120-121 levels over short term. A dip in prices can be utilised a...

SQUARE OF 9. Introduction Square of 9 was one of the greatest invention of W.D. Gann. In the 1920’s there were no calculators, so he invented his own calculator which for him was a Master Calculator . It involved natural law which was the basis of market movements. Origin. The origin of square of 9 came into picture when Gann visited India. Gann was a traveller, when he went to Indian Temple he saw a square within a circle and there were number plotted on it. He then went to Egypt and saw Pyramids. Based on such observations he made the master calculator The Square of 9. Image and Explanation. The above chart is the Square of 9 calculator. Now what we can see is in the center of the chart there is number 1 on its immediate right there is no. 2 placed. Above no.2 there is number 3 and on its left number 4 is placed and finally it ends at number 9. What we can observe from this is the numbers are placed in the spiral form which moves in a circle and t...

In our past few updates we had been mentioning that, "Nifty will move down to 5600 as many brokerage houses were expecting it to reach till 6200-6300 mark." - BANG ON!!! We had also been mentioning that, " Nifty is at crucial juncture, a move above 5970 will provide a breather to bulls but failure to cross this level will take drag Nifty back to 5600." - BANG ON!!! On the daily charts we can observe a distribution pattern on Nifty, which clearly indicates that a top is been place at 6112. The breakout came on 25th March 2013. Now the picture is very clear that sell on rallies would be the best strategy that can be adopted. We know the power of moving averages. We have be using this technique in Nifty from some time. We can observe that Nifty has crossed 20 SMA but failed to move above 50 SMA after a bearish crossover. This indicates that the trend remains bearish. Other oscillators such as MACD is in sell mode, RSI bounced from 30 but prices failing to cro...