When short term technical targets are achieved in fundamentally strong (with impending triggers) businesses, I usually consider two major factors.
First is the allocation the stock has in my portfolio. If because of the run up it has gone up too much, I might trim some holding…
Secondly I would consider an alternative opportunity as compared to the one I am planning to exit. If either fundamental or technical (or preferably both) triggers are clearly visible, I would consider trimming the position.
Besides I would look at other signs of weakness once the stock reaches its pattern target… Either some candlestick pattern, or divergence, or overbought indicators etc.
Considering all these factors I would take a call, and hope for the best outcome.
My usual problem is that I am always loaded with new ideas, and because of concentrated portfolio, short of capital. So whenever above situation arises, if the most attractive opportunity is still available at a price I want to buy it, I would consider some trimming and converting to the alternate opportunity. Trimmed a little bit of flurochem to add more to KRBL which I already bought earlier, and which seems well poised to make a move once its overhead resistance of 390-405 is overcome. Swing high of 384 was recently taken out only to face resistance at around 398 and now stock has come down to retest previous swing high zone.
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