Sesa Goa was in serious Downtrend
As you can see in the monthly chart below: Sesa Goa stock was in severe downtrend between April 2010-July 2013. The stock from levels of 480 declined to 127 in July 2013. That's not all, with the price decline - the stock also witnessed lack of trading interest.
Why focus on Sesa Goa now?: WHAT HAS CHANGED
The Chart says it all. Below is the weekly chart of Sesa Goa.
Sesa Goa on weekly basis saw a huge up move from levels of 125-130 to 200 in less than 4 weeks in August 2013. It was not only the price action but also the volume action that shocked the market participants. The move has changed the sentiment on the stock
Now also note that prior to this weekly move: stock had stalled around 200 in 2012 before selling off in 2013.
How should one play turnaround?
We don't know that whether Sesa Goa stock has turned around conclusively as stock is still trading below resistance of 200. At this point of time - there are lots of evidence that do suggest that turnaround may be happening.
Hence, we can start off by making an assumption that stock is turning around.
Stock after a big weekly move - is consolidating on weekly basis. Look at the last three candles. Such consolidation generally turns out to be a great Buying Opportunity especially at lower levels. On weekly chart, it means stock is very attractive buy near 170-180 levels. One can put a stop loss on closing basis below 160 with target of 270+
Trading Strategy
Go Long at 176.
Closing Stop Loss below 160
Target: Buy and Ride for 4-6 weeks
The research note has been written purely for educational purpose. Please do your own due diligence before trading. Please do not make BUY or SELL decision based solely on this report. Do your own research.
As you can see in the monthly chart below: Sesa Goa stock was in severe downtrend between April 2010-July 2013. The stock from levels of 480 declined to 127 in July 2013. That's not all, with the price decline - the stock also witnessed lack of trading interest.
Why focus on Sesa Goa now?: WHAT HAS CHANGED
The Chart says it all. Below is the weekly chart of Sesa Goa.
Sesa Goa on weekly basis saw a huge up move from levels of 125-130 to 200 in less than 4 weeks in August 2013. It was not only the price action but also the volume action that shocked the market participants. The move has changed the sentiment on the stock
Now also note that prior to this weekly move: stock had stalled around 200 in 2012 before selling off in 2013.
How should one play turnaround?
We don't know that whether Sesa Goa stock has turned around conclusively as stock is still trading below resistance of 200. At this point of time - there are lots of evidence that do suggest that turnaround may be happening.
Hence, we can start off by making an assumption that stock is turning around.
Stock after a big weekly move - is consolidating on weekly basis. Look at the last three candles. Such consolidation generally turns out to be a great Buying Opportunity especially at lower levels. On weekly chart, it means stock is very attractive buy near 170-180 levels. One can put a stop loss on closing basis below 160 with target of 270+
Trading Strategy
Go Long at 176.
Closing Stop Loss below 160
Target: Buy and Ride for 4-6 weeks
The research note has been written purely for educational purpose. Please do your own due diligence before trading. Please do not make BUY or SELL decision based solely on this report. Do your own research.
