Wednesday, 28 August 2013

ICICI BANK ANALYSIS - Negative Divergence,MACD Signal and Evening Star


Investors and Traders will keep making loss, but are reluctant to use Technical Analysis.

No one can time the market. However Technical Analysis can atleast come close to it.

Investors and Trader who just look at the live rates and Company Balance sheet could never predict the ICICI bank fall at around 1200 plus levels.

Negative Divergence
ICICI Bank made a higher high on 28th May 2013 at 1238.40 immidiatley after the high of 1236.90 made on 17th May 2013. The MACD However was in a falling mode even though ICICI bank was rising.
(This was the 1st Negative signal and one should have exited)

MACD Enters negative Zone.
On 6th June 2013, The MACD entered the negative zone indicating another Sell signal.This time the price of ICICI bank was 1154.

Evening Star
There was a formation of Evening star on 22nd, 23rd and 24th July 2013 on the Daily chart indicating another big fall. The price on 24th July 2013 was 951.80. ICICI bank fell further to make a  low of 788.90 on 20th August 2013.

Just Imagine if you exited at any of the signals generated, how lucky you would have been.

Technical Analysis Works.

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