When a stock breaks down - HOPE is not a great strategy.
The Idea stock seems to be learning this lesson
The Idea stock had built a solid base at 125 and there was lot of hope built around that level but the moment stock broke that level - the flood of stop losses got triggered and have broken the back of the stock. And it has been typically seen - when stocks start breaking supports - then no support is good enough to hold. "Avoid" becomes the best strategy.
Why Blame Idea only...Bharti stock also seems to be under tremendous pain with no support in sight
The lesson is very clear: Never fall in love with stocks that are in a steep downtrend.
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