标题: WHAT do u think?? [打印本页] 作者: AnalystAlan 时间: 2011-7-11 19:07 标题: WHAT do u think??
Mr. A is holding 1500 shares of a company and he wants to buy or sell some shares. He is taking the services of a broker for trading in stock exchange. Broker has analyzed the market trend based on mutual fund cash position analysis and Bar chart analysis. Broker has provided following information to Mr. A on different days:
A. Due to adverse political situation of country and some other economic factors, only 40% of mutual funds are invested in the stock market and rest is idle.
B. In the Bar chart a stock breaks through resistance level.
Required:
Based upon the above information provided by broker:
1. What is feasible for Mr. A (buying or selling) in situation A and in situation B?
2. What will be the market trend (bearish or bullish) in situation A and in situation B?
a)
1) Investments in market is only 40% of the total mutual fund cash, in mutual fund cash position we go opposite to the market so we will go long.
1
b)
After break through resistance level it is likely that stock is moving up so that's a buy signal.
