Thursday, 6 February 2014

DON'T SWIM AGAINST THE TIDE AN EXAMPLE BANK OF BARODA

You run the risk of drowning. The same happens with the stock that tries to rally against the trend. It eventually sinks to New Lows.

Have a Look at one such stock: Bank of Baroda
Here’s the weekly chart


As you can see in the chart above: Bank of Baroda began its downtrend in 2011 and since then every attempt of the stock to rally against the trend has resulted in fresh declines. The stock is a prime example of why one should never try to hunt for a bottom in a stock that is in downtrend. Reason: It’s not worth it. 

Trend persists longer than one can imagine

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