JB Chemicals & Pharma
In the series of learning Stage Analysis – here is the 2nd stock.
Weekly Chart
Once a sector is showing strength, we try to find more stocks in the same that are showing intial signs of start of S2 .
We took a very small position at the trendline (red line) break in August -it was already trading above 40 WMA and 10 WMA has crossed above 40 WMA.
We were wiating for pullback and retest of the trendline. Once it started to move after testing the trendline, we added few more stocks.
Then it broke the trading range , we added few more and waited for a putll back – blue circle shows the same. We did not add during that week as we were not sure whether it would go down or ago above the trading range.
Only last weekend we added few more as it was closing above the trading range.
Rest of the factors remain same as in Granules – sector/volume/RSI /MACD etc.
Only one factor is different, montly MACD is yet to cross to buy side. So our exposure to this stock is lesser than Granules . Once that happens, we would add more.
Disclaimer :This is just a post for learning a method. No buy/sell recommendations. These are probability study methods and chances of success depend upon various factors.
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