There is very simple trading rule:
- Never lose sight of strong stocks in bearish market.
- Stocks have powerful memory and they bounce from supports.
Here's Wockhardt Pharma Stock Daily Chart
Wockhardt Pharma has been a strong stock over last 18 months. The stock has been trying to form a new base at 1180-1190 since Feb 2015. Now, when in September - stock declined to that level once again - bullish traders used the opportunity to buy and take stock higher - and in matter of 5 days - stock was up 20% which is not bad in current market conditions.
The above trading behavior gives great insight on how market throws up opportunities even in troubled times.
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.