One should never chase a bus because bus in bullish market arrives frequently. All one needs to do - look out for a new one.
The Oil Marketing companies have been in the strong Bull market for a while and continue to make new highs by fresh breakouts. The two leading stocks have been - HPCL and BPCL.
HPCL and BPCL both broke out to NEW HIGH in May 2016. They both then pulled back to retest the breakout point as support and then rallied again...in a pretty classic textbook style.
Here's HPCL Chart
I did cover HPCL as Live Case Study on June 07 2016 just when it was retesting the breakout support. It's price was 905 then.
Here's BPCL Chart
Now, both the stocks retested breakout support on June 07 2016 and a month later - are up 14%. Did you miss both the bus -
Here's another stock from that group that has broken out this month -
The Stock is Indian Oil
The breakout looks more compelling if you stretch the time frame on the chart -
The Science of Stock Price Action has a certain take on what happens when stocks break out. All we need to do: watch and find out: Is this the genuine bus and can it make up for the lost opportunity.
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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