Edelweiss
Well, this stock had a kind of a happy run from 2012 to 2018 and after that it went into oblivion.
This chart re-emphasises on our often repeated warning signals.
Once a stock starts closing down 20 months moving average for few months, start assuming that either something has changed fundamentally or some large investors have shunned the stock or some problem exists in overall markets.
And once stock starts closing below 40 months moving averages, this gets further cemented.
For a long term investor, these are good time to fullly or partially exit.
Red arrows mark the price moving below 20 MMA , 40 MMA .
For any long term upmove , the stock needs to close above 40 MMA for few months.
Monthly Chart
In short to medium term ( we check weekly charts), the stock has resistances between 70-77 and then it needs to cross a mega- resistance of 100.
Weekly Chart
Poor people like us should stay away from this stock untill we get any clear signals. We have limited money and we can’t let it loose its value due to inflation and waiting in these kind of stocks.Investing in these kind of stocks at this stage , and then waiting is a rich man’s game.
Poor people like us can’t live on hope !
Disclaimer :This post is just a for learning a method. Views are personal. No buy/sell recommendations. These are probability study methods and chances of success depend upon various factors.
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