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Sunday 10 February 2013

Support and Resistance - Important Lessons

Trade Avoided - Axis Bank - Important Lessons

Today I avoided buying Axis Bank by following important concept of Support / Resistance. Several brokers had given buy call for Axis Bank. I do not know the reason why it did not move up. But charts had given indication that the stock will not move. 

Below points are important for day trading. 

1. Previous high on the same day is a resistance. 
2. Previous low on the same day is a support. 
3. Previous day's high is an important resistance. Once crossed, many people will come forward to buy. 
4. Previous day's low is an important support. Shorters come in tons if that is crossed. 
5. Also check the support and resistances (the points where the stock paused) in the last few days, this could also be important turning points. 

Now read about Axis Bank from the charts. 
Also Read: Introduction



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