When a blue-chip stock comes down to support levels, then it becomes a buy.
Example: In May 2016 - Apple stock came down to $90-$92 and offered a compelling buy opportunity. Just see my tweet around that time
Why Apple stock can bounce from current levels...the stock is at solid support levels pic.twitter.com/8khPxXhRE6
— Deepak Singh (@smarket) May 3, 2016
Just see where Apple stock is 9 months later - Up 50%
Why Apple - here's Disney another blue-chip stock at support - see the tweet
Disney has come down to very attractive BUY levels pic.twitter.com/Ah8oPxb1pA
— Deepak Singh (@smarket) September 27, 2016
Just see where Disney is right now
Here are two such opportunities again -
1. Exxon Mobil - I shared this on twitter just few days back
Exxon Mobil - Big loser in last 3 months. The stock is back to support levels..div yield 3.71% but still no takers.
— Deepak Singh (@smarket) February 22, 2017
2. Schlumberger - Taking multiple support at 200 dma
Is there a guarantee that these stocks will rally? Absolutely not. But considering history...there is no harm in being optimistic about these stocks. I have written this article just to demonstrate how the logic of Buy Low and Sell high works
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