Himatsingka Seide flashed on my stock screen last June when it broke out with Large Candle. I remember I was on a flight returning to India when one gentleman asked me if I have any stock idea to share. Considering the breakout was fresh in my mind then - I shared this breakout idea. I never knew that person will take my idea so seriously. I just received a thank you message from him. I never knew that time - a casual conversation will turn so profitable for him but it happened because that person exercised patience with the breakout idea. (Please note I am not an advisor, and I don't give recommendations)
Himatsingka Seide: The Resistance and the Breakout
Himatsingka Seide broke out above 64 in June 2014
What stock did post breakout for a year? - Nothing
Now considering how market did over last year - the performance of Himatsingka Seide was not even average. But here's the good news: stock never violated the technical structure. The breakout remained intact. The stock followed a text book style long technical consolidation. It came back to near base of the follow through candle around June 2015. I never gave up on following the stock and did cover again in State of the Market Videos this time more from Sectoral Perspective: "Are you following Huge Rally in Textile Sector"
Here's what stock did in last 6-7 weeks:
One year stock did nothing but then just in 6-7 weeks - stock delivered more than 100% returns. That's what Break outs do. That's why as per Technical Analysis - one should have patience as long as stock price behavior is not erratic.
What NEXT for Himatsingka Seide?
Himatsingka Seide is right now at monthly resistance of 165-175. Any breakout from here will take the stock to NEW HIGH and from there a fresh bull market can emerge. But right now, stock needs to make new high - retest 175 as support before a case for fresh bull run can be made
The reason I am sharing this post: There is a method in the madness. Himatsingka Seide rally teaches us lots of lessons on how one should approach breakout, market and stocks. Lots of times, we are not short on ideas but short on patience and that becomes the difference between making and losing money. Please do share your feedback.
If you don’t stay with your winners, you are not going to be able to pay for the losers. ~Michael Marcus
Also Read: What should one do with Exide Ind stock?
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