aks85

Asian Paints: No clear direction

NSE:ASIANPAINT   ASIAN PAINTS LTD
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As seen Asian paints has broken out of the ascending rectangular channel, breaking the pattern of higher lows formation on the daily chart .
See how the stock was moving up in the channel making strong moves upward and taking small correction on the downside helping us to understand the direction and the strength of the trend, but lately buyers were not able to take the stock up as can be seen by a small move on the upsides and a big move down, indicating sellers are becoming dominant. However, this does not mean that I will sell this stock , as for me to take such a stance, I will need more confirmations, like a lower high formation.

So, what would be my trade on Asian Paints?
As of now I would keep away from this stock because of the following reasons,

1) Higher time frames have been bullish and in the higher time frame charts as of now it seems to be a small correction which may or may not change the trend in future. I always try to trade in the direction of the larger time frame, though there are some exceptions where I take counter trades but that I would not recommend to the beginners.

2) No one can ever can predict the start and end of a trend ( You cant sell at the top and buy at the bottom). So even if I miss on a trade from here I will have no regrets.

3) When in doubt, I never take a trade as I will not have the conviction to carry on the trade if it goes against me.

This is my view through which I just wanted to share my thought process before I take a trade.