Vodafone Idea - Break out or FOMO (speculative trades)
Well, I have been observing this chart for over a monthly, frankly more so because a lot of people had exposures (some investors, stuck in the stock before the fall, and other speculators, to review the chart for them
My initial observations were very bullish at 4.5 to 5 levels... as there was an accumulation stage in process and volumes were high, and most importantly, RSI showing tremendous strength whereas price was in a big range. Generally when you have a range in a very big time, breakouts can be very strong (look at Tesla, a 4 year range break, 4times return in less than a year.)
Initial stand vindicated, prices doubled from where I'd first recommended.
Now, the big question, what from here?
Well the weekly charts show a breakout now happening and the daily charts also suggesting a few candles breakout and maintained. The zone from 6.5 to 11 had witnessed 2 big red candles to bring the price down and really no support at all when the prices fell last time. Now, when the breakout has happened, we have seen a strong big green candle and I am expecting the next resistance to be near the 11.10 to 11.45 levels....
15 on the stock is also possible, one has to keep an eye on the charts
Positives
1. Economic activities picking up, positive for telecom as an industry
2. Lockdown opening up
3. International equities, especially the US charts above 200 day MA and holding higher
Is this a stock to buy and hold, I think not yet. I may still recommend to watch out
IF I am long the stock, when do I exit
I would look out for price to move into a trading range on the weekly charts, suggesting bigger players dumping their stock, unless there is a fundamental change in the story of the stock
Keep reading , you can ask any queries if you have, happy to share my inputs
My initial observations were very bullish at 4.5 to 5 levels... as there was an accumulation stage in process and volumes were high, and most importantly, RSI showing tremendous strength whereas price was in a big range. Generally when you have a range in a very big time, breakouts can be very strong (look at Tesla, a 4 year range break, 4times return in less than a year.)
Initial stand vindicated, prices doubled from where I'd first recommended.
Now, the big question, what from here?
Well the weekly charts show a breakout now happening and the daily charts also suggesting a few candles breakout and maintained. The zone from 6.5 to 11 had witnessed 2 big red candles to bring the price down and really no support at all when the prices fell last time. Now, when the breakout has happened, we have seen a strong big green candle and I am expecting the next resistance to be near the 11.10 to 11.45 levels....
15 on the stock is also possible, one has to keep an eye on the charts
Positives
1. Economic activities picking up, positive for telecom as an industry
2. Lockdown opening up
3. International equities, especially the US charts above 200 day MA and holding higher
Is this a stock to buy and hold, I think not yet. I may still recommend to watch out
IF I am long the stock, when do I exit
I would look out for price to move into a trading range on the weekly charts, suggesting bigger players dumping their stock, unless there is a fundamental change in the story of the stock
Keep reading , you can ask any queries if you have, happy to share my inputs