Ind hotels, Is it worth buying after it has surged over 110 % ?
The stock has been a stellar performer for over a year. Many avoid the stock as it has moved over a 100% in a year.
However the overall structure is to studied upon.
1.First rally 130-140 to 225 levels
This rally stated after breakout of 15 year consolidation, usually whenever stocks breakout of the longer consolidation perform superbly.
( check the link in the description for the analysis )
2.The new base formation
After the strong multiyear breakout of 15 years, the stock rallied around 45 % post breakout. Hence a consolidation was expected. Stock formed a range form 175-225.
3.The next breakout & retest
The stock broke out of the 175-225 range and came down after breakout & managed to hold on to the upper level of the range. The stock continued the uptrend after moving out of the narrow range of 7 weeks. This was the fresh entry point around 240 as marked by the black arrows. check image below.
4. The next base formation
The current base formation is in process since 49 days as marked by purple arrow. Within this base the stock formed a small range for 9 sessions and broke out of it yesterday.
While correcting from the upper end of the base the volumes dried up, from yesterday there was volume rise day on day basis which shows fresh buying coming in.
5.New Entry
So there was a entry point on 31-Oct-22 where SL comes around 290-300 zone which is 9-11%. At current price risk comes around 15% which is slightly higher. Let the stock come aorund the 9 bar range breakout level around 325-335 where risk is 9-10%. If the stock rallies further then wait for any suitable setup with low risk to form.
To conclude, As stock which has broken out of 15 year consolidation is a super performer for next few years & tend to rise higher. What seems expensive after 110% move has potential to become more expensive. Risk must be defined & respected at any cost. buying outperforming stocks givens good returns. Stock which has corrected say 50% can go down even 100% from your 50% discount buying too.
However the overall structure is to studied upon.
1.First rally 130-140 to 225 levels
This rally stated after breakout of 15 year consolidation, usually whenever stocks breakout of the longer consolidation perform superbly.
( check the link in the description for the analysis )
2.The new base formation
After the strong multiyear breakout of 15 years, the stock rallied around 45 % post breakout. Hence a consolidation was expected. Stock formed a range form 175-225.
3.The next breakout & retest
The stock broke out of the 175-225 range and came down after breakout & managed to hold on to the upper level of the range. The stock continued the uptrend after moving out of the narrow range of 7 weeks. This was the fresh entry point around 240 as marked by the black arrows. check image below.
4. The next base formation
The current base formation is in process since 49 days as marked by purple arrow. Within this base the stock formed a small range for 9 sessions and broke out of it yesterday.
While correcting from the upper end of the base the volumes dried up, from yesterday there was volume rise day on day basis which shows fresh buying coming in.
5.New Entry
So there was a entry point on 31-Oct-22 where SL comes around 290-300 zone which is 9-11%. At current price risk comes around 15% which is slightly higher. Let the stock come aorund the 9 bar range breakout level around 325-335 where risk is 9-10%. If the stock rallies further then wait for any suitable setup with low risk to form.
To conclude, As stock which has broken out of 15 year consolidation is a super performer for next few years & tend to rise higher. What seems expensive after 110% move has potential to become more expensive. Risk must be defined & respected at any cost. buying outperforming stocks givens good returns. Stock which has corrected say 50% can go down even 100% from your 50% discount buying too.
Order cancelled:
Came down on huge volume!
Came down on huge volume!
