Naukri stock broke out above well defined resistance of 390 on 25th October 2013. I covered Naukri as Breakout Stock on Nov 11 2014 at price of 410 with a following note:
As you can see in the chart above: Naukri stock has broken out above well defined resistance of 380-390 – a level where it stalled for more than 3 years. A Breakout to New High means market participants believe that stock is now ready for a major run ahead. Globally, Internet stocks are in very strong Bull market and hence it’s no surprise to see Naukri breaking out.
One can look to add the stock near 390-415 zone in core portfolio with stop loss below 50 week moving average (340-350). This is not a trading stock. One should try to hold the stock for next 2-3 years to see major major gains. I am basing my analysis purely on technical analysis. Please do your own due diligence before investing or trading.
This is what happened in following 10 months - The stock from levels of 400 is now knocking the doors of 800. Well, that's what breakouts do.
Here's the Naukri Weekly Chart
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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