Today the stock gained 11% based on a news event (results/ guidance blah blah).
Now we will analyse stock on 2 timeframes
Daily charts: trend was down from 1120 levels. Support at 950 broke but this got negated as the stock opened above resistance (1030).
Now people who like to trade the short side (futures) will say.... big loss.
My answer - as you long as manage the risk, your loss will generally be limited to 1% of your capital. So why worry?
Monthly charts: trend is till up
SEBI disclosure applicable
Now we will analyse stock on 2 timeframes
Daily charts: trend was down from 1120 levels. Support at 950 broke but this got negated as the stock opened above resistance (1030).
Now people who like to trade the short side (futures) will say.... big loss.
My answer - as you long as manage the risk, your loss will generally be limited to 1% of your capital. So why worry?
Monthly charts: trend is till up
SEBI disclosure applicable
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