Behavioural Psychology says: No. As a matter of fact - people start selling stock the moment it makes a new High but that's a big mistake. Actually, lots of time that's the best time to buy a stock. I will share many examples over next few days and weeks on why a breakout to New High is best buying Opportunity.
Example # 1: Dabur. Here's Dabur breaking out to New HIGH in 2009.
Dabur made a new high in 2009 above 58-60 levels. It was a decisive breakout. The stock rallied a little and then pulled back to 60 and then rallied again. Over next five years, stock trebled. Today it is trading at 187.
When a stock breaks out to New High, it is generally a sign of good things to come. Unfortunately, many view it as the end of good things.
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