Never trust a slow mover
if demand is enough, it should go up fast
if not, a small increase in supply can trigger substantial fall
#coforge https://t.co/2yJRCUFMIO

FMCG sector is really strong since few days now. Like the bottom in MArch 2020 where pharma and fmcg rallied and lead the market, we have IT and FMCG as leaders now.

But would u really consider betting on HUL (medium term) recent breakout considering its structure ????

Momentum always fade before it reverses. No abrupt reversal in it.
U can see in the pic below, it always passess through a choppy zone, before trend reversal to give a clear momentum.

With a huge gap up and no follow through today, price is still not bearish
means no short now

Candlesticks shows where price want to move,
Volume shows the force behind that move,
RSI signals the strength of the force in moving the price
Bollinger Bands signals the space all these together are making for price to move into

These are my tools &
This is how i use them

My simple Approach towards Breakout trading :

1. Scan stocks on the basis of FTDB Scanner.

2. Buy stocks with EMA-9> EMA-21> EMA-63 > EMA 200 & Volume 200% up

3. maximum SL of 1.25X ( ATR )

4. I do breakout trading only in Nifty -500 stocks

#StockMarket
#trading
#Nifty

This is in response to the question by @unseenvalue

If I had to buy 1 stock today, anywhere in the world, no avg. up or down, 5 year holding period (I will make that as 10 year for thesis to play out)

Since I track mainly Indian equities, restricting the choice to this space

Few points to look for
1. Strong macro tailwind rather than headwind, huge growth runway for company/segment. It can't be in a niche space & demand must not be easily substitutable
2. Strong Biz Model, high growth curve (15%+ over the period), strong ROE profile (hurdle rate 20%)

3. Low or no leverage, efficient capital allocation, (read minimal or zero fresh dilution requirements), strong cash flows and correspondingly high dividend payout ratios (consistent dividend history) and finally strong moat and with limited regulatory involvement / no reg issues

4. Promoter quality and intention must be beyond reproach, proven management with skin in the game
5. Capability to manage disruption, and if possible to even profit from it. If you can't be disrupted easily, you will eventually adapt your game to gain scale

6. There must be a possibility of non-linear growth if the scale-up hypothesis gets proven right. It's like an FD with low fixed return plus significant upside optionality. Multiple revenue streams / margin levers / IP that can provide non linearity in growth

For Shorting like my Dixon short trade -Find stocks that have negative monthly price cycle & turning into EMA 10/20 on weekly

From there you can get low risk entry point & good R:R

Just need 1-2 good short trade for a 3% monthly gain. Extreme patience to wait for best time

The biggest winners have great earnings on the table right near the start of their massive mega move.

Look for Eps growth and acceleration stocks

Your big winners of the next bull market will most likely be from this list

Proven methods followed by achievers like WON , DR