I covered Liberty Shoes and Mirza International as Breakout stock way back in Feb 2014. Here's the pdf version of the report.
Liberty Shoes covered at Rs. 125.5. The CMP is Rs. 295
Liberty Shoes: Perfect Breakout Chart
As you can see in the weekly chart above: Liberty Shoes stock had a pretty stiff resistance at 120. After many years, the stock managed breakout in Dec 2013 and made a vertical breakout move to 160.
There was lots of excitement then but stock sharply pulled back to 120 by first week of Feb 2014. The noise and enthusiasm of breakout disappeared. It was during that calm period - I covered the stock as Breakout Buy on pullback near 125. The stock remained quiet for another month and made no progress till March 10 2014. It's around that time, stock picked up again and started making breakout move again. And now by first week of July, stock is at 295 - more than 2.3x all in six months time. This is a classic perfect breakout stock which did everything from breaking out to pullback to testing patience and to making momentum move. That's how breakouts work.
I cover breakouts at http://www.smarketpremium.com
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