HDFC stock is having one of the best time right now but here's how it has happened on the Charts....
HDFC stock since July 2017 was trading flat
As you can see in the chart above: HDFC stock was moving between 1640 and 1800 and there was nothing very exciting about the move but when you scratch the surface - something interesting was happening - stock was preparing a base for take off. The moving average 200 dma inched up and converged with Horizontal support around the first week of December 2017.
Science of Stock Price Action: When Supports converge in a stock that is in a Bull market, then stocks have a tendency to take off. That's precisely what happened with HDFC
HDFC stock took off in a textbook fashion.
HDFC stock found that support around first week of Dec at price of 1640 (Horizontal Support Line + 200 dma) and then it took off and broke out above 1800 and mathematically it's on its way to 1960.
Science of Stock Price Action
The Business of Investing is not same as Investing in business. You have to know how stocks make a move and try to capitalize on that opportunity. It means following fundamental newsflow and its impact on Price Action.
Price Action is one of the best ways to make good investment decisions. That's what I teach all the time.
If you find Price Action fascinating - then Science of Stock Price is a good place to start. It's a website designed to help you learn various Price Action concepts.
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