Science of Stock Price Action is derived from Laws of Nature and Physics.
One of the old saying based on simple observation of nature: Birds of a feather flock together. If we apply this in financial market - it translates into stocks of the same sector move together.
Let's apply the concept to Cement Sector.
Here're most of the stocks in the sector forming the bottom around May 20-23
1. Ambuja Cement at 100 DMA
2. ACC at 100 dma
3. Ultratech Cement at Moving Average
4. India Cements - Horizontal Support around May 23 2016
5. Birla Corp - No Technical Support. Just the Bird of the feather logic on May 23
There is a big lesson one can learn from this sectoral movement. Example: How important it is to marry sectoral and stock analysis and the best opportunity emerge when they are in sync and part of the bigger move.
Here's one more sector that seems to be doing a similar thing as Cement Sector. In this post, exclusive for Science of Stock Price Action Premium Readers - I explain the logic and how the sector is positioned. It's a Live Case study which one can observe over next few weeks and months to see how it works out.
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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