There is a very simple trading rule:
If a stock is in strong uptrend and belongs to a bullish sector, then a pullback to 200 dma = BUY.
It is based on the above trading rule, I picked Strides Arcolab as a potential opportunity around September 10 2015. I posted this on my twitter timeline
Now a month and a half later - the stock is up 24% - and not a bad trade.
Here's how it appears on the daily chart - very close to resistance of 1350 now
Such case studies help us lot understand how the market and stocks move technically and how one can evaluate opportunities
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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