Virat Crane has broken out of a 5 year high above 49 this week with a big bullish candle. Breakouts with big bullish candles usually indicate strength in the breakout. Volumes expectedly at the time of such breakouts are good. Overall a good technical set up.
But one thing that I have observed with most breakouts is that there is usually a retest of breakout zones and sometimes stock prices go below breakout zone also, as a sort of shakeout of weak hands. And then the rally resumes with vigour. In some rare instances we see stocks race past key multi year resistances and just keep going up, but these are rare.
In case of Virat Crane note the consolidation between 25-44, before the recent breakout. Usually stocks that have consolidated before a major breakouts provide better and more reliable set ups.
I don’t know much about the company, but if I were you, I would try to dig in details about the company and try to get a thesis of why I am investing.
In the current markets, I see a lot of set ups similar to Virat Crane, or some other set ups where picture is equally good. And in those names its much easier to do detailed research due to much more availability of information, from AR, concalls, presentations, scuttlebutt etc.
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