Opportunity As Transparent As Glass!
Authored On: 11-Feb-14
Last Modified: 11-Feb-14
This was truly fantastic for our trades! We spotted strong long signals on NSE:PIRGLASS [Piramal Glass] on February 07, the last Friday. There was a oversold RSI which was moving away from oversold zone into momentum, there was MACD which was turning into buy / long zone and there was strong support which seem to be confirming itself very nicely!
We took long positions, and how good those signals where. . . . .!
It appears from news flow today only, that promoters of Piramal Glass have offered / are thinking to offer share buyback with attractive price option. No doubt PIRGLASS jumped 20% on yesterday Monday and around 15%+ today. One may argue that there may be just coincidence between bullish technical signals on Friday and news that took it to where it was by end of trading day today - whopping 40% something jump! However, technical charts discount everything - all hidden, open news, sentiments and so on. Consider them to be a non-linear polynomials with its all terms taking considerations into all such factors and resultant of such a equation showing price prediction!
Anyway, see diagram above for aforesaid strong bullish signals that came out by end of day Friday on our end of day charts, as we took those positions on Friday.
Another important take away here is to look for companies which may see promoter buyback! It is impossible to predict if and when promoters will think of buyback, but very high promoter share holding is a good indicator to start with, and PIRGLASS matched into this criteria, when we analyzed fundamentals post our technical analysis, just before taking into our long trades.