For long term investors, the question that arises here is - Where is the next buying zone? From which price levels the stock will show a bounce back?
Here we will learn the use of or . Every stock respects a different and hence a single cannot be used as a common standard. From the historical monthly chart, we can observe that the stock has been respecting the 50 day (more than 3 times) in the for the past 8 years. Now the stock is coming down to the 50EMA support having broken the 20EMA .
Thus we can initiate a buy around 300 levels, where the 50 day support exists.
When to buy?
We should buy only when we receive multiple confirmations. Those should be:
a. Stock respects the 50 support.
b. Stock forms a bullish or harami candle from the 50 support.
Only when these two conditions are satisfied, we can initiate a BUY on this stock.