Kakatiya cement, in a slightly upward channel.

Kakatiya Cement & Sugar ind,daily chart 

I attached here a daily chart of Kakatiya Cement. You can see that from 15th Nov 2016 to yesterday 10 th March 2017, Kakatiya is moving in a upward moving channel. It touched supportline of channel first time on 22nd Nov 2016, then it went up towards resistance line of channel and touched it first time on 11th Jan 2017, it takes nearly 50 days to complete its upward journey. Price consolidate near the upper band of channel for nearly 18 days and only after that it started it’s down ward journey. Now after 22 days of its downtrend, it close on negative note yesterday marking Rs 325 as a closing price. Price is going towards channel support of 300 to 305. and only after that we can expect next uptrend towards Rs 400.

As the channel is upmoving, more days it takes to touch the upper line of channel ( resistance line ) the more upper target we will get. But it is sure that tgt will be above 400 rupees because as the time is passing channel resistance line is moving upward & upward. It is also exciting to see that, prior low of 303 and support line, both are prevailing on the same price line. so that will act as solid support.

I insert bollinger band and with the help of this indicator, we can see micro range of price movement. Yesterday price move below moving avg line (red ), so we can say that this share closed on a negative note. 

So conclusion is that, Kakatiya Cement will touch 300 to 305 mark & only after that it will cross Rs 400 mark.

You can read this article on investing. com also, link is https://in.investing.com/analysis/kakatiya-cement,-in-a-slightly-upward-channel.-200178565

Update 2, 26th March 2017, 05.20 pm

Kakatiya cement & sugar ind, daily chart

     As predicted in original post, Kakatiya share price made low of Rs 303 on nse. This happening is very much important to prove that, ' the channel is working in a good way.' Price took 8 trading days to touch channel support line and prior low price mark ( red horizontal line ). 

     Now the question arises, "where will price go hereon ?" To predict it, we should have to understand the channel technique. What are the channel's & how they works ? In very simple words answer is that, " channels are nothing but simple higher highs and higher lows or in contra lower highs and lower lows." It is very simple but very powerful Dow theory & nothing else. Supports are prior lows &channel's southward  line. On the other hand resistance is prior high & channel's northward line.

     In this case, after posting original post, share price touched channel support line and prior low price marking on Friday at NSE. One important thing is that support line of bollinger band is also placed at same support price marking. So there are solid support from these 3 different sources. These are the reasons for strongly believing that," price can not go downward from hereon."

     Price of Kakatiya should go upward or consolidate for little time at this level. On the upside there is resistance of prior high placed at Rs 357 mark. Price can make little struggle there but finally it will cross the resistance line. Why I think like this ? It is just because," while taking trend reversal from channel support line and bollinger band support line, upward movement is full of energy with increase in volume.

     Confirmation of trend reversal is above the Rs 330 mark where the middle line ( moving avg ) of bollinger band is placed. But I can confidently give advise that," one should buy at CMP because of solid support from 3 different sources are placed here.

     Price can hit 425 ruppes mark, where channel resistance line is placed. If it cross & sustained above the resistance line of channel, then that will be huge break out for this share. But I am suggesting you to trade for Rs 425 as tgt. After hitting the same, use trailing stop loss method and wait for break out. If break out will not happen, your stop loss will be hit and profit will be booked.

     If you like this article, share it on facebook and other social media. To get regular updates , please subscribe to email, follow me on twitter and google+. 

     Thank you, Jay Shriram.

Update 3 , 30 March

As predicted in prior post, Kakatiya Share price touched channel support line, bollinger band support line and prior low marking support. Look at the attached chart and read the analysis of current situation.

Kakatiya share price made an inverted hammer candlestick pattern. I showed it in text. In the month of December 2016, it made same inverted hammer indicating trend reversal from bearish to bullish. After that price turn upward and touched high of 360 from the low of 230 around.

Same thing is happened here. Lets look at this example to understand inverted hammer.

Kakatiya share price behave in the same way and created this chart pattern. Now next resistance is middle line (red) of the bollinger band. This red middle line is actually moving average. It works as resistance point for the upward moving price and support point to downward moving price. After crossing it price can easily move towards resistance line ( upper line ) of bollinger band. Currently this line is placed at 342 mark. One should note that bollinger band is moving indicator and not steady like channel. After crossing channel resistance line placed at 342, Kakatiya share price can easily go upward to 400 + mark, where channel resistance line is placed. As channel is upward moving, every day passed push the targeted price up and up only.

Many traders and investors always talk about nifty down or up trend and its impact on Kakatiya share price. So here is comparison between nifty index movement and Kakatiya share price movement. 

nifty vs Kakatiya 

You can see that, there is no coordination between nifty movement and Kakatiya share price. 

Update 4, 3rd April 2017

Kakatiya Cement daily chart

     As seen in the daily chart, Kaka closed above middle line of bollinger band, which is sign of entering in bullish territory again. Now next resistance is Rs 357 around, which is prior high. Bollinger band upper line ( resistanceline ) is resistance also, but as it is moving indicator, it can turn upward.

     Point to be noted here is increase in volume, you can see it at the south end of chart. Price went upward with double volume, this indicates good force in upward movement.

     conclusion -- everything is going as predicted in original chart. 400+ is on the way, just matter of time because it is daily chart. thank you, Jay Shriram.

final update, 24th April 2017, 12.10 p.m

nse daily chart, kakatiya cement

     As seen in the chart, Kakatiya share price successfuly break the resistance of bollinger band resistance line as well as resistance of prior high ( 357 ). It sustained above it. Now it can move towards upper line of channel,, which is placed above 425. as it is daily chart, prediction can take take its time in days. Use trailing sl method to protect your profits.

     I am closing this post now, thank you, Jay Shriram.

25 th April

     Booked full profit at 412.50 and made exit. Rs 105/ share profit. Thanks to god for this reward.