It's fascinating when you see a stock following a text book pattern - all unfolding before your eyes Live. Let us look at the Suzlon Daily Chart
How it all started? - Corporate Development, Euphoria and Gap-up
The news came out in middle of Feb that Sun Pharma's billionaire promoter Dilip Shanghvi has bought a 23 per cent stake in the wind turbine maker. Suzlon stock posted a BIG Gap -up on Monday Feb 16. There was then follow through rally and Suzlon stock a month later was at 30.
Text Book says - This gets followed by Closing of Gap
Post that move, stock lost its way and started trading sideways with downside bias. Around 9th of June, stock tumbled to 19.9 and closed the Gap it created on Feb 16. The Gap closing converged with 200 dma too - making it very attractive entry point. The stock bounced from there and now 2 months later - stock is trading 35% up from that level
Suzlon stock has followed a very text book like path so far and such charts provide great learning opportunity on how to approach a stock and market.
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