There are many times - Various Opportunities show up on the screen and at times it looks attractive too but even then you give the opportunity a miss because there is no buzz, no conviction, no hype, no nothing. All there one has lots of doubt.
Case Study: NTPC
NTPC stock in early 2016 rallied from lows to the resistance of 169 and then pulled back. On pullback, the stock took support at 200 dma. The fact: stock took support at 200 dma made the stock attractive opportunity. But even then it did not pass the oppty test because of long history of stock doing nothing
But see what stock did after taking support at 200 dma in October 2016:
NTPC stock is up 20% since then - a great oppty
Another Case Study: GAIL
What's amazing: GAIL and NTPC stock did the same thing around the same time
Gail, an uninspiring stock, rallied to the resistance and then pulled back to take support at 200 day moving average. See below
Just see what Gail stock did from 200 dma - and compare with NTPC stock chart. What's even more amazing - GAIL formed a chart pattern quite similar to NTPC stock chart around the same time.
Gail stock is up 30% since then - a great oppty
I hope you found the case study helpful. There are many such learning opportunities - Premium Case Studies
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