sandeepbalachandran

What went wrong with Motherson Sumi Systems?

NSE:MOTHERSUMI   MOTHERSON SUMI SYS
Well, to state the obvious, the stock basically corrected itself after giving a massive breakout on June 2nd. And some of us (including me) were expecting this stock to give another magical upswing in a very short period.

Also, the correct working trend-line is the yellow fine line on this chart.

Will it fall further down?
Honestly, this stock has been on a SpaceX Falcon 9 rocket wanting to settle on a different star system for the last couple of months. I would wait and see how it performs tomorrow before investing.

Things to note: Both MACD and RSI (support at 40 .9) are leaning on a negative shoulder as of now but the price is at a rather decent support line. It also has 2 very strong resistance levels (given in the chart). So strategize accordingly.

Here are a few thing to understand before investing
  • You need to let the stock breathe and settle after a breakout. Do not jump in with guns blazing and expect magic to happen

  • Never freshly buy into a stock that's given a recent breakout. There is a high chance that it will correct itself and you will end up losing your Area of Value instead. Patience helps you hit the nail on the head. Meditate or shut your laptop if your fingers are itching to make a trade.

  • Hear people out and see what they have to say but in the end always do your own research and analysis before buying into a stock

** This is not a recommendation and I cannot be responsible for your losses. Profits, maybe.

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