Saturday, 25 March 2017

Some Technical Analysis - Bombay Dyeing

Trend spotting using Technical Analysis is an art. Mathematical art. Its insights and predictions are not cast in stone.

A look at the recent price breakout in BOMBAY DYEING. Price is the THICK BLACK LINE.

The RED line is the 15 day EMA. The black line is the daily price movement.

Bombay Dyeing's price has been bouncing up each time it has touched the 15 day EMA line in red, since Dec 2016.

At the same time, the 15 day EMA has been rising. Steadily.

If we look at the ACDL and OBV lines, they have been steady.

If we look at the GMMA, the red GMMA has stayed above the green GMMA for an extended period.

And now comes the clincher - if we look at the CMF line around 6 -14 March 2017, its sudden drop does not affect the price. In the same time period, the ACDL dips as the CMF dips, but the price remains unaffected.

So the price jump around the 14th or 15th had to happen.

...or so it hindsight...

I missed this price breakout. I checked Bombay Dyeing today after almost one year..


1 comment:

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