Arguement: When a stock breaks down - then HOPE becomes a bad strategy.
ICICI Bank - Everything was fine with the stock as long as it was trading above the solid support of 280-285.
But stock broke down in August 2015.
ICICI Bank stock broke down below 280-285 in August 2015. Now we are in May 2016: 10 months have passed and stock is at 218 - much much below 283. There is a saying in technical: Once stock breaks down - the gravity pulls it down even more.
Simple Lesson: Buy Low Sell High works as long as stock is BUY on DIPs (Uptrend). The moment stock breaks down - then Buy Low Sell High can become very Painful.
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