Ultra Tech Cement

Planning buy Ultratech Cement, Date: 6-Aug-13

Lot Size: 125

Scrip Name: ULTRACEM CMP :1773	Comment
Trade Check List
Bollinger Band Level	Closed below lower band
ADX level	19.27
5 & 14 day RSI Value	12 & 32
Support Level	1759.65, 1746
Resistance Level	1791.3, 1809.2
Action	Buy

Target: 1901, 2000.35 Stop Loss: 1755

I feel if this trade favors as per this strategy, it provides excellent Risk/Reward ratio.

* Odds favoring trade

1. Relative strength indicates  over sold condition.
2. Since ADX < 20, which indicates non trending moment.
3. Closed below bollinger band level @ non trending moment.

* Odds Against trade

1. Better monsoon data, slow down in construction business. 

Note: brought @ 1746 its second support level today with stoploss @ 1735.