What is the Trading rule?
Strong stock gets a good buying support at 50 dma
Here's Praj Ind stock daily chart
As you can see in the chart above: Praj Ind has been one of the strong stock in last few months. The stock made a big candle breakout move around price of 70 and then just continued with the upmove. The stock now has pulled back and in last couple of days - despite weak market has done well to hold 50 dma. Will this good enough for bulls to jump in and take stock higher? Well, only time will tell
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1. 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.
2. I am not a registered investment advisor. My views are strictly based on my understanding of chart. Please always do your own due diligence before making any investment/trade.