When a stock breaks out, then one should Ride the Rally.
One question people ask: How should one ride the Gains? Well Power Grid stock has tried to answer this question
Power Grid = The stock managed a Breakout above 148 on Weekly Chart in May 2016
When a stock breaks out, then an ideal thing a stock can do is - Deliver a nice trending move. Power Grid stock has just done that be it on a weekly chart or on daily Chart. Here's the daily chart -
What lesson can we learn?
The best breakout plays are those stock charts where stock post breakout follows a nice trending move. It helps traders ride the wave. Even Short term traders can look at this moving average and keep playing it till the party lasts
Premium Case Studies:
- Here's one nicely trending Chart that is Up 29% in last 9 weeks. I shared it as a Live Case Study.
- Two lessons I learned from MCX stock movement in 2017?
- How Britannia flushed out weak hands before making a move from 360 to 3860 in 7 years? How can one avoid such flushing out?
- How stocks climb Mount Everest?
- Following New Breakouts
The objective of the Premium Case Study is to learn from real stock price movements on regular basis and then look for similar text book opportunities in current environment. It helps one form a strong conviction in price action.
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.
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