When stock does everything right on charts - it's bound to create excitement among technical trading community. Here's why there is buzz around Lloyd Electric Chart.
1. Respect for 200 day moving average
In 2015 - the stock from levels of 120 has rallied to 260+ with strong support at 200 day moving average. When stock respects long term moving average, then traders consider it as bullish. Also, creating a base at 200 dma is interpreted as stock creating a launch pad for huge upmove.
2. The Volumes in last few days
The recent price surge has come on back on very healthy volumes. On Friday, the stock was in top 100 traded stocks on NSE. It indicates strong trading interest in the stock
3. The stock all ready for HUGE Breakout on Monthly chart to NEW ALL TIME HIGH
I did cover this breakout possibility on October 14 2015, and it looks like it's happening this month. Considering we are in last week of October - a big move can create a decisive breakout on monthly charts.
What does this all mean?
When a stock does everything you expect it to do, then yes it does reinforces belief in the stock. Will Lloyd Electric make a big bang bullish move - well at this point of time - we can HOPE so. Having said that, in markets we are dealing with probabilities and nothing is certain
Please share your comments on what you think of stock observations, market and trading in general. Please do your own due diligence before trading or investment. Do not treat the above as any recommendation.
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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