GNFC has come out with earnings report today
GNFC - v strong results EBITDA +54% At Rs 163.7 Cr Vs Rs 106.3 Cr (YoY) #1QWithCNBCTV18
— Varinder Bansal (@varinder_bansal) July 21, 2016
No doubt, it's an excellent number but look at what stock has already done in last few months.
The question many will ask - Did stock chart give any hint before making this big move?
Let's see how it all started
The First Move: Every Big move starts with a stock giving HINT that it wants to make a big move. GNFC stock did that when it made a gap up opening above 200 dma after a long period of time in Nov 2015. Here's how the stock did it
The first hint is only to help you add stock in your screen. The real move comes weeks/months later. That's what happened with GNFC.
The GNFC Chart did all the hard work between Nov 2015 and March 2016. It was ready for big bullish launch on March 10 2016:
I covered the stock on March 10 2016: GNFC (Point 22). It was Rs. 75 then
Rationale: When a stock makes a gap-up opening above 200 dma and then pulls back to test 200 dma as support, then double dip at support becomes a strong buying opportunity.
And Just see what the stock did in following 4 months
There is a logic that stocks follow when they make big moves. I have tried, to sum up, those concepts in a methodology called Science of Stock Price Action.
Do these concepts work all the time? Absolutely not. But when they work - they reward in a big big way. There are many factors at play primarily the overall market environment. The objective of my website is to put forward many Live case studies before you so that you can learn how these patterns work and why sometimes they fail too. The whole idea is to illustrate and make you understand the whole logic behind it.
If you find my work interesting - I will encourage you to buy the book and access Premium Case Studies. The idea is to demonstrate live how patterns unfold and work. They succeed, they fail but the whole process is real fun. I invite you to be part of it.
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