Written by Our Staff Writer
February 9, 2010: In this report we analyze the charts of four stocks to find support and resistance areas to trade off.
- The levels marked by the red lines on the charts below are resistance areas, where we'd would take profits on long positions or establish a short position
- The levels marked by the green lines are support areas, where would take profits on short positions or establish a long position
- The red line is our short entry point and the blue line above the red line is our stop loss point. We always take our loss at the stop loss to minimize losses
- The green line is our long entry point and the blue line below is our stop loss. We always take our loss at the stop loss to minimize losses.
- Once our position is profitable we move our stop loss to lock in profits.
- As swing traders we prefer to enter limit orders and walk away from our computer so that our orders are executed when prices reach the support and resistance levels we identify
Charts of ITC, L&T, Maruti and M&M