Divis Lab (Will the Pharma Rally continue in this stock ?)
Divis is regarded as one of the best companies in the Pharma space. And it has proved its worth by rallying in line with the industry.
Current after a break through results the stock has been consolidating in a ranger a while and has ended up forming a triangle on an Hourly time frame.
The support and resistance in the triangle is also supported by 200EMA (Red Line) and 9EMA (Green Line). Any breach on either side should give a good play and stop losses can be place above/below the green and red line for trades on Downside/Upper side respectively.
However since the return of volatility trades have not been maintaining their trajectory as happened last week with Bajaj Auto and Bata India. (You can check my posted ideas). Both the stocks broke through and gave the expected move, hit my target only to reverse on the same day and close inside the triangle. These move are going to happen more often than not for a while. As the US elections approach people are going to react to things more emotionally than with thinking/knowledge.
So make sure you aren't caught on the wrong side of the trade. And always have a stop loss.
Current after a break through results the stock has been consolidating in a ranger a while and has ended up forming a triangle on an Hourly time frame.
The support and resistance in the triangle is also supported by 200EMA (Red Line) and 9EMA (Green Line). Any breach on either side should give a good play and stop losses can be place above/below the green and red line for trades on Downside/Upper side respectively.
However since the return of volatility trades have not been maintaining their trajectory as happened last week with Bajaj Auto and Bata India. (You can check my posted ideas). Both the stocks broke through and gave the expected move, hit my target only to reverse on the same day and close inside the triangle. These move are going to happen more often than not for a while. As the US elections approach people are going to react to things more emotionally than with thinking/knowledge.
So make sure you aren't caught on the wrong side of the trade. And always have a stop loss.