There are times when the stock is well set on Charts to rally and everybody excited about a big rally but is that a guarantee that you will get a chance to celebrate.
Example: Vedanta at 200 dma
Vedanta stock had a terrific 2016. It rallied from very depressed levels, broke a good resistance around Brexit and doubled from that levels but 2017 has been lackluster and uninspiring. Here's how stock looks on chart right now
The stock has pulled back and is holding 200 dma for few weeks now. The stock keeps bouncing from support of 200 dma and building a nice base. Generally such bases lead to good upside move. That's what theory says but this is market and here there are no guarantees.
All one can do - Hope considering action suggests that stock might run but you never know. Ready 1,2, 3 run
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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