STOCK NEAR EMA-200
The last couple of months have been a complete roller-coaster ride for the Indian stock market. Nifty-50 has shown great volatility, thereby offering great earning opportunity to all traders. Medium term investors, also popularly known as swing traders, however found it a little difficult to pick stocks as the market was not particularly favoring them. The market has shown some positive action in the last week, so as to keep the interest of the swing traders warm. This positive action can be used as a good entry opportunity as many of the stocks that seem to be fundamentally very strong are now available at dirt cheap rates.
One of the theories that a swing trader can use to pick stocks in this type of market is to look for counters that are trading near EMA-200 or have been constantly taking support of this tremendously strong support. Discovering such stocks as not as difficult as it sounds as the immensely helpful software developed by TraderGuide comes to every investors aid. “Smart Trader+”, one of the most comprehensive technical analysis softwares developed by TraderGuide houses a highly advanced scanner called the “Query Builder” that serves the aforementioned purpose. All that one needs to do is select the strategy that he/she wants to run, finalize the time frame and the index and the remaining work will be taken care by the Query Builder.
Here is a glimpse of how the Query Builder presents its results:
Here, we tried to identify stocks that are trading near EMA-200 on EOD time frame and which are a part of Nifty-50 index. The scan has presented us with great results with stocks as good as Reliance Industries, Cipla, Bajaj Finance and many more making the cut.
Following is the EOD cart of Reliance Industries, which shows that the price has taken support of EMA-200 several times in the last week and is still trading near the same levels.
A swing trader may buy reliance industry with a stop loss near the EMA-200 line as the counter is expected to appreciate if the market continues its bull run. This offers a great buying opportunity with favorable risk-reward ratio.
There are many more ways by which you can identify such potential counters and for that all you need to do is visit www.traderguide.in and register yourself and our executives will help you all the way.
- Anand Singh Gaur
- Sunil Kothari