Sunday, September 7, 2014

JP ASSOCIATES –What is NEXT? HIGHEST VOLUME SEEN in LAST THREE YEARS.


JP Associates in NEWS:- Last week JP Associates in News due to the Shares Sold by its Promoters. And that too after very short period after they PUT QIP.(at around Rs 70)

So people were really worried about their SHARE SALE. And After the news hit the Markets there was a BLOODBATH for Two Days and Share Fell down by more than 30% in two days.

What is NEXT FOR JP ASSOCIATES?

Possibilities:-

1. Weekly Chart:- HUGE VOLUME in LAST THREE YEARS

image

  • Weekly chart showing the SUPPORT (Demand Area ) in the ZONE of  32.50 to 28.60 so for this week one can expect that it will take SUPPORT at these levels.
  • But the real thing what is PLAYING the MAIN CONCERN is VOLUME Last week has shown the highest ever volumes in JP ASSOCIETS in LAST THREE YEARS. So this is the main Concern where they are going to take the PRICE.

2. DAILY Chart :- HUGE VOLUME in LAST TWO DAYS.

image

  • Price has broken the STRONG Demand area with HUGE VOLUMES and Knocking the NEXT LEVELS of DEMAND.
  • RSI in OVERSOLD area but still not showing any traces of reversal.
  • Volume in LAST two DAYS has PICK UP to the HIGHEST in LAST THREE YEARS.

3. IF BOUNCE --where can it take?

image

  • For the Bounce if it has to come the levels of FIBINACCI 23% and 38% can be the First levels to be expected. These are 46 and 54.25 Respectively.
  • For this we have to CONFIRM the PRICE ACTION in SMALLER TIME FRAMES LIKE 60M or 30M on MONDAY-TUESDAY.

 

CONCLUSION:-

     Though there is a HUGE CONCERN of INCREASED VOLUME. But still if one has to PLAY then One can buy in the Range of 31-32 with Stoploss Below 28.

But we would better wait for the Further PRICE ACTION in PLAY for the CONFIRMATION of the further COURSE OF ACTION.


For Further Reading,
JP Associates TECHNICALS, Technical Analysis

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