Prasan had shared some of his picks with the members. Thanks a lot, Prasan :-)
1. STEC
Have a look at the weekly chart of STEC. The last major resistance was at 5.
Can you believe it that after that, there was no stopping for this stock ??
No Sir!! this stock has no time to stop and wait. It is like a man with a mission in a hurry to go up.
I would like to buy it. But I would place the stop at 3. Why so low ?
I can not find ANY OTHER support point.
It is just going up just like a hot knife passes through butter!!
Then as it moves furthur up, I would buy more.
If it corrects, i will have to allow it to correct upto 3. Only below 3,I would be sure that this stock is not worth keeping.
TASR:
In the figure, do you see the Green and Red dots ? They represent the major support and resistance points.
It is climbing a mountain of doubt and fear. It has succesfully crosses two levels of resistance. You can see that the current price is higher than 2 green dots. It has to cross three other resistance points and be GREATER than 12 to really go up.
If I buy it, the stop will be at 6
You may ask, why I am using a weekly chart instead of a daily chart ?
If you are thinking of buying and selling a stock, use a weekly chart to get the big picture and analyse the stock. You can view the weekly chart of stocks at many places.
Look at www.bigcharts.com It has good charts.
Then use the daily chart for timing and buying the stock.
Please feel free to ask questions.
Sanjoy
