Thread about pullback trades:
There are always some challenges when you take a pullback trade.. like lack of momentum and facing many residences midway. In such a situation, you can choose a stock with strong Index/sector or the one that has given breakout. (1/6)
There are always some challenges when you take a pullback trade.. like lack of momentum and facing many residences midway. In such a situation, you can choose a stock with strong Index/sector or the one that has given breakout. (1/6)
HUL, Britannia and TCS are recent examples.
TCS post results dropped over 10% and has been underperforming in the whole IT sector. However, IT sector was performing well post breakout. It was best time to look for a pullback trade in TCS. (2/6)
TCS post results dropped over 10% and has been underperforming in the whole IT sector. However, IT sector was performing well post breakout. It was best time to look for a pullback trade in TCS. (2/6)
After touching the major support, it gave a bullish signal. It gave a non-stop one sided rally and did a breakout too.. more than 15% return in just a few days.
(3/6)
(3/6)
HUL and Britannia - When FMCG Index gave breakout TataConsumer and JubFood were outperforming but HUL and Britannia were a good opportunity for a pullback trade. Both reversed from support, gave breakout and gave a rally of more than 10%. Amazing risk reward trades. (4/6)
Recent failed pullback trades:
HeroMotoCorp - 2750-2800 was important support but couldn't hold it as the whole Auto sector was weak and was breaking past supports.
Lupin - 1100 was good support and retest zone of past breakout but couldn't hold it. (5/6)
HeroMotoCorp - 2750-2800 was important support but couldn't hold it as the whole Auto sector was weak and was breaking past supports.
Lupin - 1100 was good support and retest zone of past breakout but couldn't hold it. (5/6)
and fell dramatically post results as Pharma sector got weak.
Pullback trading gives amazing risk rewards but lack of momentum can leads to frustration too, so by following this strategy we might get better results and helps us in picking pullback trades. (6/6)
Pullback trading gives amazing risk rewards but lack of momentum can leads to frustration too, so by following this strategy we might get better results and helps us in picking pullback trades. (6/6)
Resistances*
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