Technical Analysis of Indian Equities by Nooresh

Momentum Trading – How to trade Multiple Top Breakouts.

One of the classical trading patterns is to look for multiple tops and a breakout with volumes.

 

In this post we take a couple of examples and possible breakouts.

 

This is the chart which was sent to Technical Traders Club subscribers around 2.30 pm on November 7th. With a view of short term. 

 

Zicom Electronic Systems  – Triangle breakout

zicom

 

The stock had just crossed the resistance of 125 with strong volumes.

 

The chart after todays closing

 

Zicom Breakout

 

The stock was also recommended in a show on CNBC a few days back

 

http://www.moneycontrol.com/news/stocks-views/expect-zicom-to-move-above-rs-170-nooresh-merani_1226072.html 

 

and on Bulls Eye program today

 

Now its time to book half or partial at 1st target of 150 and keep a trailing stoploss and ride.

 

Do note – Not all trades go right like above and quite a lot hit stoplosses but trading is not about being right but about risk management and trading low risk high reward setups.

 

For example look at this chart of Reliance Capital which took our stoploss and is now back above 500 :). Whipsaws are part of a traders work.

 

In another post will try to post some possible stocks on radar.

Article by Nooresh Merani

Nooresh has written 2745 articles.

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