Brutal drawdown in the stock in the month of October. I am trying to learn price-volume action for stocks. The price action for Rushil since October when it broke through the 520 support levels and closed the gap (474-520) and the volume action today, makes me think either results are quite poor or the resignation of the Secretarial Audit may have more to it than meets the eye.
Its also possible that Rushil has a good Q and price jumps back up (This happened recently in RACL Geartech, where the stock had started correcting in anticipation of Europe related slowdowns but results were strong and the stock is up 15% today), but the price volume action makes it look less likely to me. Greenpanel has also been consistently correcting.
Since I am trying to learn price-volume action and how to play commodity cycles via Rushil, I decided to exit my position today with minor profits. I was pretty torn about this decision and I am still not 100% sure about it. I don’t expect disastrous results from Rushil this Q, in fact results should be strong (Realizations may come down from Q1 but volumes should be strong). However, with freights coming down and imports resuming and exports coming under pressure sooner rather than later, peak margins are probably behind us. So its best to respect price action here in my opinion.
PS: None of the above is investment advise. I am a novice at technicals and commodity cycles. The above post is for shared learning and also to document my trades for future analysis.
| Subscribe To Our Free Newsletter |
