HOW LONG WILL IT SURVIVE: VIDEOCON

Videocon stock has done nothing since last 28 months and it seems the stock is just floating above the surface. The question is how long can it survive this way.


Here’s the Videocon weekly chart

 

As you can see in the chart above: Videocon stock has just held on above 165-170 since July 2011. There have been few instances where stock has rallied but all resulted in disaster. It’s matter of time before stock makes a decisive move. Considering how up move has failed: one should be careful. A breakdown can lead to disaster and big down move.
There is another possibility: False Breakdown which would be bullish i.e. a stock breaks down below 165 and then makes a sharp recovery above 165.
Whatever may be the case: If you are Videocon investor – be careful. There is no reason to buy till we see some real move i.e. breakdown or false breakout.