What Direction Market is Heading

[20-10-2011 ] After few days, blogging was not easy with other works. I am bit busy these days with Income Tax period is began and need file all tax returns before 30th November. Anyway, But I can't avoid blogging. we have to look closely about Share Market Statistics now.

These days every body is talking about What it has really happen to CSE? Is it going to be another Bangladesh scenario. But this is the time for smart investors. Why, If you can enter today or few days later, that will be the right time to invest. If you look at ASI historical chart, there was a sudden appreciation during last year (2010). Most people believe correct value for ASI is between 5000-6000. I think this should have happen. This is a lesson for those who believe stock trading is a " kapruka". This is the reality of share trading. As every stock market also have upward trend as well as downward trend. This trend teach us buy share with some technical analysis for the particular share as well as market. When the market going down, we have to wait and look at what direction market is heading. Also we should have a exit point. Practically I bought SINI at 272 and sold at 365-370 levels. again I bought that 330 levels with a expectation for high profit. But with the down trend of the market signaled me to sell SINI at 295-305 levels with 30 rupees loss. Now SINI is 230-240 almost 55 down my exit point. I learnt it from Bill O'Neil (guru). I request you too follow that method with a some analysis. I considered downward trend of the market as well as selling pressure of SINI due to downtrend of the market.

As you all knew, RSI is now below 30 for most of the shares. That mean oversold. What will happen after oversold. Sellers think, now we should not sell and buyers think this is a good price to buy. With that thinking buyers will come to the market and prices will go up. You should understand this before arguing that market is going to collapse. This can't be happen. Now your time to collect shares. In this point you have to move on fundamentally sound counters as well as dropped shares with small volume. These shares will be lead the market toward profit.

If the market turn back prices will boost and we will miss the train. I expect history will repeat for AAIC and SINI. 200-235 is good price to collect SINI and AAIC price will slump further and good to collect at 150 levels. Having lot of shares to look closely, I mentioned these two shares for the time being. I'll publish other shares with fundamentals and technical analysis very soon. But you must keep your mind that I don't recommend to buy/sell or hold any share. You should analyse and decide that.

Happy trading