State of the Market|Reading the Psychology of the market

There are four liquid real estate stocks - DLF, Unitech, HDIL and IndiaBulls Real Estate. The question: Which one of them has the best (bullish) chart?

Pictures speak louder than words. So, have a look and decide for yourself

DLF stock daily Chart

Source: ChartAlert [www.chartalert.com]

Unitech

Source: ChartAlert [www.chartalert.com]

HDIL

Source: ChartAlert [www.chartalert.com]

India Bulls Real Estate stock daily chart

Source: ChartAlert [www.chartalert.com]

Here’s some of the observation based on the above charts..

1. Most of the stocks of same sector move together and have similar patterns.
2. DLF, Unitech and India Bulls Real estate are trading between 200 dma and 50 dma
3. HDIL is the only stock that has been strong and has held on to 100 dma.
4. Why not 50 dma for HDIL? Every stock has a unique price history and as a chartist what matters where stock takes support; and not where it should take support.

The strength is determined by how stock behaves during weakness; and how panicky/anxious its stock holders are. Considering this aspect, we can safely assume: HDIL has the best bullish chart among all real estate stocks

As always, please note the above stocks are not trading recommendations.

Disclaimer - The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers