KRBL stock price has crossed an important resistance zone of 340 which was also its 3 year high level. There were strong volumes when stock price crossed this level recently. Posting below the chart of KRBL.

The upper horizontal blue line represents a 3 year high resistance line at 340.

Soild green thick lines represent a double bottom formed (consolidation before attempting 3 year high) between 276 to 330, wherein it spent nearly 17 trading sessions before breakout on the upside.

Two dotted blue lines represent an early stage breakout above strong resistance zone of 263-268, where one could have attempted to pick the stock early.

The range of the horizontal consolidation (barring a short shakeout kind of dip to 92 in the sharp March 2020 correction) was from 180 to 340, which is 160 Rs. Adding this 160 to the breakout level of 340 gives us a working target of 500 which we can keep at the back of our mind.

Fundamentally Pakistan which was a major exporter of basmati rice has suffered severe floods leading to disruption of supply and thus opens up more space for lucrative export markets of middle east and Iran etc for players like KRBL.

disc: invested as a techno funda bet recently post breakout.

@Paxrxxthi

First a slight clarification about this whole fresh ATH theory…

By fresh ATH, we mean a stock clearing previous all time high posted in past few years. Here we don’t mean all time high posted last week or last month. For fresh ATH to be meaningful it has to be a few years ATH.

Now usually we have three kinds of outcomes once a stock clears its multiyear ATH.

It either blasts off and registers gains of varying proportions, say 30-50-100% once it clears ATH.

Other is that it goes slightly above ATH, then comes down to retest the zone in and around ATH and then resumes uptrend to post decent gains.

Third is it clears ATH by varying degree and comes down and starts a major correction.

We are interested in stocks which give good returns post clearance of ATH. The most important parameter to look out for to figure of these kind of breakouts is to lookout for strong consolidation either slightly below ATH, or in and around ATH and then a breakout. These are the kinds of situations which give the perfect launching pads for strong upmoves post clearing ATHs.

I assume we are discussing above type of scenarios.

The other scenario is that once a stock clears ATH, it establishes a firm strong uptrend and keeps posting fresh swing highs (technically its an ATH, but I prefer to name it swing high just to differentiate it from multiyear ATH breakouts. Here there is a breakout, then stock posts swing highs, then consolidates for some time sideways and then starts a fresh upmove. Guys like Minervini use these kinds of consolidations and fresh breakouts to move in and out of the stocks, besides riding the multiyear ATH breakouts.

I prefer to look out for bigger movers post ATH or 52 week high breakouts. These often take time in the form of long sideways movements, or slight corrections, but when the call goes right, returns are also big. And once I start enjoying the upmove I usually don’t give up my positions quickly to get in and get out and aim for the intraswing moves. But if someone has such skill and mindset, it can be attempted. Not my cup of tea.

Just one question regarding Nykaa and higher segment. Do you expect there is enough juice in the TAM for higher segment or do you expect Nykaa target lower segment in search of growth ?

Sir are you using IND money app for buying US stocks?Please guide us, I am also thinking to invest in US market.

I did not use it, did not buy. Sharing for educational purpose.