Namaste!
I often wonder why do retail people and even institutions sell when the stock has been already fell. Why didn't they sell when the stock was rising?
I follow a simple principal. Either sell it at a profit or don't sell.
Anyways, In the weekly chart of the ultratech, you must have noticed the circles I've drawn.
These circles represent the price as well as volume candles.
Rising prices should mostly be supported by the rising volumes. But in this case, the volume is falling. This can be a fake-breakout. And the number 3 is very strong indication.
This isn't the 1st time for Ultratech. The stock has proved the above statement two times previously.
Opinion to investors: Well, investors should never sell any stock they own. This isn't limited to this stock, but to any stock. But, if you were planning to add more (buy more) shares, you can wait for a correction.
Opinion to traders: Well, you can trail your stop loss to either Rs 6510 or Rs 6584. Again, both the prices has importance of their own, so don't get excited for the high SL price. The first price is based on the weekly candles and second is daily.
Disclaimer: The analysis I have shared is based on my understanding and experience in the markets. Investment does not guarantee a fixed return due to volatile nature of markets and may result in a loss. Please do your analysis and/or consult your financial advisor before investing.
I often wonder why do retail people and even institutions sell when the stock has been already fell. Why didn't they sell when the stock was rising?
I follow a simple principal. Either sell it at a profit or don't sell.
Anyways, In the weekly chart of the ultratech, you must have noticed the circles I've drawn.
These circles represent the price as well as volume candles.
Rising prices should mostly be supported by the rising volumes. But in this case, the volume is falling. This can be a fake-breakout. And the number 3 is very strong indication.
This isn't the 1st time for Ultratech. The stock has proved the above statement two times previously.
Opinion to investors: Well, investors should never sell any stock they own. This isn't limited to this stock, but to any stock. But, if you were planning to add more (buy more) shares, you can wait for a correction.
Opinion to traders: Well, you can trail your stop loss to either Rs 6510 or Rs 6584. Again, both the prices has importance of their own, so don't get excited for the high SL price. The first price is based on the weekly candles and second is daily.
Disclaimer: The analysis I have shared is based on my understanding and experience in the markets. Investment does not guarantee a fixed return due to volatile nature of markets and may result in a loss. Please do your analysis and/or consult your financial advisor before investing.
Comment:
Well, my analysis was quite right. Today's candle confirmed strong bearish momentum. If somehow price reach Rs 6990 levels, selling pressure should come again, it's a basic price action. Hopefully, It reach Rs 5050 levels in the long term, then I will invest.
Comment:
It looks like my analysis costed around -30% opportunity cost as the stock hit life time highs. But its MTM profit right? You don't actually own the profit until you sell. I am still intact on my Rs 5050 levels to think about adding shares.
Comment:
I expect anyone who is reading my writings to know that there is nothing "certain" in the markets. Neither the %gain on stock nor "out-performance" or "under-performance". There is a risk and opportunity cost involved in both, buying and selling. Selling at any price can often result in "opportunity loss" when the stock moves higher and higher. Human psychology is a culprit here. For e.g. I post any stock which seems undervalued or overvalued to me on tradingview. When anyone makes money on that, they wont appreciate me "a single word". But when they lose or it results in opportunity loss, they are bound to blame me. I don't criticize any person, because I know their psychology has defeated them. At last, there is nothing like "easy money" in the markets. The survival of the fittest holds absolutely true here.