CLEAN SCIENCE - About to enter Stage-2 after big Accumulation ? The analysis is done on Weekly TF.
The purpose of sharing this analysis is to make viewers understand the stage concept
Legendary Trader - Stan Weinstein has introduced this concept of Stage analysis of a stock.
A stock goes through 4 stages in its lifetime and the cycle repeats.
Check below charts to understand the concept and results better -
1) CAMS -
2) GUJGASLTD -
The stock - CLEAN SCIENCE has been in accumulation phase for more than 570 days and now seems to be coming out of its stage-1 and entering into Stage-2
A stock moves fastest in its stage-2 and hence a stock entering stage-2 should always be on our radar for opportunities if we want to make good money.
This concept of Stage analysis has been used by many traders/investors like Mark Minervini and others.
The above analysis is purely for educational purpose. Traders must do their own study & follow risk management before entering into any trade
Checkout my other ideas to understand how one can earn from stock markets with simple trade setups. Feel Free to comment below this or connect with me for any query or suggestion regarding this stock or Price Action Analysis.
Stanweinstein
Don't miss this - A market leader is available at a good price. How to do good in the markets ? - Buy low and sell high :-D
Well, in this article, I will try to explain how can you really do well in the markets, practically. Not just an advice like - Buy low and sell high.
Here's an explanation for this analysis:
Fundamental:
1. A Market leader - Castrol is the second highest market share holder with more than 20% market.
2. Very strong Fundamentals - These numbers are just dream for any company. The below figures are twice as good as any competitors in this business.
ROCE - 60.8 %
ROE - 45.9 %
3. Consistent profit growth.
There could be other parameters also, but I am highlighting the above three for fundamental analysis.
Technical:
1. Huge buying force: A good share is known for performance and this has given 600% from the listing. Which is significant.
2. Correction: 60% correction from the top which catches my attention to notice a good share.
3. Base formation: Like my other analysis, I like to see a good base formation for a decent time frame. Here, the stock stops making lower lows and starts showing the sign of strengths.
4. Breakout: The dream begins here. As per Stan Weinstein (whom I have learnt a lot from), this is the stage 1 breakout. Here the stock shows first sign of strength again.
Summary: If the stock confirms the breakout above 148-150 on the monthly charts, it can be a good entry location for the long term.
Please understand that, nobody can make you rich by just giving you a share name, it is you who should understand your inner self and play the games by your own rules. !!
If you like Stan Weinstein - then you need to track this stock
As per Stan Weinstein methodology, stock is in late stages of accumulation
Trading above 30 Week EMA
People following that methodology will be keeping a sharp eye on this stock.
From EW - Price has reached the resistance level in a clean 5 wave rise, after completing a 78.60% retracement of the whole rise since its listing.
Any retracement would offer good entry point.
Lets see how this develops.
Stages of stock market cycleNSE:SRTRANSFIN
stock market stages by Stan Weinstein
Most important rules to grow and protect capital :
1) only go long when stock is in confirmed stage 2
2) never hold a stage in stage 4