Stock Futures Trading Made Ezy - Sesagoa

Trade in Sesagoa has not been an inspiring trade. On 9th Sep I gave a call to my subscribers at http://www.stockezy.com/  to buy Sesagoa Sep Futures at 312/315. Day low on that day was 310.1 and from that point Sesagoa has kept itself higher only. But still my subscribers could not benefit from buying a scrip at its recent low. It was because I was not comfortable with the negative news flow of this company and its group companies. But technically speaking it was the right time to buy. Reasons for buying this scrip were as follows:-

1. There was bullish MACD crossover by its trigger line from below zero.
2. My customized Slow Stochastic had reached its oversold position.
3. Bollinger bands had narrowed down considerably and the buy price was at the lower end of the band.
4. Upper band of Bollinger was forming around 330, indicating that the scrip should test this upper band as the first resistance.

Despite all the above reasons there was a degree of discomfort in short term due to negative developments of illegal mining in Orissa and also environmental issues. So this is what I had to say after the close of trading on 9th Sep.

Posted by Archana Debnath - Sat, Sep 11, 2010 9:35AM IST

“

On Monday,if Sesagoa opens gap up above 320, then hold with stop loss at 318 for tgt of 330/335. Otherwise exit at 318/319

”

On Monday, ie 13 Sep, the scrip did open gap up but only around 315.5. That made me give the target to exit at 320, because it was the first minor resistance of 10 day EMA. Instructions during trading hours on  13th Sep are reproduced below:-

Posted by Archana Debnath - Mon, Sep 13, 2010 9:42AM IST

“

All to exit at 320/322

”

By exiting this trade my subscribers could manage to book profit of about Rs 2000/3000 only in two trading sessions. However on 13th Sep  itself, Sesagoa made a day high of 327 and closed at 325. And the very next day the scrip made a day high of 332, but we had already exited without reaping the actual benefit. This is what fear can do to you. Wish I had more conviction in my target initially given out on 11th Sep.

Trading room activities are contained in this link : http://www.stockezy.com/opinions/7367/buy-sesagoa-sept-fut/