First of all, let’s understand the longterm view. Here is the weekly candle and the 3 lines are CPR (Central Pivot Range). A basic yet powerful rule that a stock is bullish untill it stays above CPR and bearish when come down under the CPR.
Well, these are yearly CPR and you can find that the stock was bullish since 2015 (as captured in the image). Price took support on CPR in 2015 and goes upside. Again took support on 2016 and went upside. Again in 2017 and went upside. Again 2018 and 2019 and went upside.
Simple??
In 2020 (Covid 1st Wave), crossed CPR and recovered at the end of 2020. Later again it became bullish in 2021. But again broke CPR in 2022 and currently under CPR (Range Rs.1467 to Rs.1521).
From my view, there has no worry if you are a long term player. Because ultimately it will go upside in upcoming years. But…………. still there should have a trade plan, remember stoploss….
Understanding the previous years, it is compulsory to price should go upside CPR range mentioned above. Otherwise, it is your call on how much loss you can digest and stays within the trade.
Well, these are yearly CPR and you can find that the stock was bullish since 2015 (as captured in the image). Price took support on CPR in 2015 and goes upside. Again took support on 2016 and went upside. Again in 2017 and went upside. Again 2018 and 2019 and went upside.
Simple??
In 2020 (Covid 1st Wave), crossed CPR and recovered at the end of 2020. Later again it became bullish in 2021. But again broke CPR in 2022 and currently under CPR (Range Rs.1467 to Rs.1521).
From my view, there has no worry if you are a long term player. Because ultimately it will go upside in upcoming years. But…………. still there should have a trade plan, remember stoploss….
Understanding the previous years, it is compulsory to price should go upside CPR range mentioned above. Otherwise, it is your call on how much loss you can digest and stays within the trade.