When stocks are in a strong Bull market - they build a long base before making fresh move. The Big question: Is that what Repco Home Finance stock has done on the chart.
Here's Repco Home Finance stock daily chart
As you can see in the chart above: Repco Finance has built a solid base at 560-570 for over a year now and it just needs a trigger to take off. The trading action of last few days do appear encouraging.
Any break below 560 decisively will result in large scale liquidation and hence one should have stop loss below this level.
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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