I wrote an article on 3 Leadership stocks at moving average around may 23. Here’s the status Update of those 3 stocks 2.5 months later
The three stocks were:
GSK Consumer has been in bull market since Jan 2009. It has never slipped below 200 dma even once in last 3+ years. As a matter of fact – every decline to 200 dma has turned out to be excellent buying opportunity. If we look at last 6+ months: the stock has done quite well to hold 100 dma. As of today – the stock is right at 100 dma: which is a low risk buy setup. One can accumulate the stock at cmp and every decline to 200 dma for decent gains over next 12 months.
HDFC Bank has been in strong bull market for long time. The stock is at 200 dma. Will institutions continue to like the stock or stock will get engulfed in overall market weakness.
Oracle Financials: The stock has pulled back quite a lot from highs. Yesterday…it bounced from 100 dma. Does it mean stock will hold 100 dma? We will wait and watch to see.
Here’s the May 23rd article - Read Here
Let us look at where they are -
GSK Consumer is now at 2822 – much higher above 100 dma/200 dma
Oracle Financials is at 2849 – up 18% from the price covered on May 23
HDFC Bank delivered superior bounce from 200 dma – is now at 600 – up 23%
I hope this very well explains the reason why one should always be +ve on bullish stocks at moving average. Sometimes these stocks do take time but 7/10 times deliver superior returns.
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.