Ashok Leyland was in strong Bull Market in 2015

Source: Chartalert.com

As you can see in the chart above – the stock made a big move in 2H CY 2015. Generally, when stocks make a large move – they trade sideways to correct timewise and also give an opportunity for moving average to catch up. Ashok Leyland stock did the same – it formed a base at 80-82 zone and resistance at 96-98.

Source: Chartalert.com

In January and Feb, when the market went in for the deep correction – Ashok Leyland took support around 80-82 twice and once it even converged with 200 dma. It offered a great entry opportunity and then when market started recovering – Ashok Leyland was first to rally and knock the door of fresh highs.

Lesson

When stocks enter strong bull market – one should add them on watch list and look for opportunities when they are are near supports. The strong stocks are the first ones to recover strongly.

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