i want to buy a stock in CNS (delivery) this week, which one will u suggest (reasons Plz) …
The proper point to buy a stock as it emerges from a well-formed base is at the “pivot point,” which is the point of least resistance. In a cup-with-handle chart pattern, the pivot point is generally 1/8th of point above the highest price in the handle.
As a general rule, investors should not chase a stock more than 5% above the pivot point, because buying a stock extended in price involves taking on more risk. Our studies indicate most winning stocks will not fall back over 8% from the pivot point. So if you are buying a stock perfectly at the pivot point, and it does fall 8% from that point, it should be sold immediately.
Further, investors should always sell any stock that falls more than 8% from their purchase price. So if you are buying a stock extended in price, you run the risk of being shaken out of the stock even during a normal price retracing. So buying a stock right is critical for success. In many circumstances, you can sell a stock before the 8% loss rule if it is not behaving properly. For example, if you buy a stock as it is breaking out on heavy volume, then the stock retreats into the base, you may want to sell part of your position, even if you are down less than 8%. Remember, you can always buy the stock back if it breaks out again.
Source : MarketSmith India
Hey go for DeepakNit or IGL for short delivery. Quick profits in a week.