Tug of war between News & Support - Gensol Engineering :)
When a good stock crashes due to a Bad News -
Let's review the case of Gensol Engineering. Yesterday ED zeroed-in on Dubai-Based Operator-cum-FPI Tibrewal in a MOB Case and Froze 581 Cr worth of his assets. Zenith Multi Trading DMCC, one of the companies promoted by Tibrewal owns stakes in companies like Servotech Power Systems, Gensol Engineering, Pritika Auto, Balu Forge etc...
Subsequently Gensol Engineering Crashed 10% LC and Servotech got locked in 5% LC. Both these stocks were part of our recommended portfolio
Today, Gensol engineering opened Gap Down, Kissed the Trendline Resistance and bounced 6.5% and higher. Why ????
Here is How Retailers fall into the Trap....
Any NEWS has the power to destroy 1 or more Support or Resistances, but have you ever wondered whether the Company itself shuts down its door / go Bankrupt because of the NEWS ? If not, then why get into the Trap and Sell out in Panic ??? But this is exactly what happens everytime.
After 1 - 2 days of crash, the price takes the Next available Support and bounces back. Because the NEWS in this case is NOT about the company itself, but just some shareholder.
As per Technical Chart - Gensol Engineering was travelling within Parallel Channel and completed a Rounding Bottom BO and touched the top of the Channel and now on the way to Retest the BO zone. The NEWS just expedited the time taken to complete the Retest.
In this case, the Retest zone is covered by 2 supports (Trendline + BO Zone support). Price took Support and bounced 6%. So next time, when you see a NEWS based crash - find opportunities to accumulate more around the Support zone. You will make much more Money than before :) :) :)
Disclaimer:
Stocks-n-Trends is NOT registered with SEBI. We do not provide Buy / Sell recommendations - rather we provide detailed analysis of how to review a chart, explain multi-timeframe views purely for Educational Purposes. We strongly suggest our followers to "Learn to Ride the Tide" and consult your Financial Advisors before taking any positions.
If you like our detailed analysis, please do rate us with your Likes, Boost and share your comments
-Team Stocks-n-Trends
- How powerful is that News ?
- How long can it push the price down ?
- How are Retailers Royally Cheated ?
Let's review the case of Gensol Engineering. Yesterday ED zeroed-in on Dubai-Based Operator-cum-FPI Tibrewal in a MOB Case and Froze 581 Cr worth of his assets. Zenith Multi Trading DMCC, one of the companies promoted by Tibrewal owns stakes in companies like Servotech Power Systems, Gensol Engineering, Pritika Auto, Balu Forge etc...
Subsequently Gensol Engineering Crashed 10% LC and Servotech got locked in 5% LC. Both these stocks were part of our recommended portfolio
Today, Gensol engineering opened Gap Down, Kissed the Trendline Resistance and bounced 6.5% and higher. Why ????
Here is How Retailers fall into the Trap....
Any NEWS has the power to destroy 1 or more Support or Resistances, but have you ever wondered whether the Company itself shuts down its door / go Bankrupt because of the NEWS ? If not, then why get into the Trap and Sell out in Panic ??? But this is exactly what happens everytime.
After 1 - 2 days of crash, the price takes the Next available Support and bounces back. Because the NEWS in this case is NOT about the company itself, but just some shareholder.
As per Technical Chart - Gensol Engineering was travelling within Parallel Channel and completed a Rounding Bottom BO and touched the top of the Channel and now on the way to Retest the BO zone. The NEWS just expedited the time taken to complete the Retest.
In this case, the Retest zone is covered by 2 supports (Trendline + BO Zone support). Price took Support and bounced 6%. So next time, when you see a NEWS based crash - find opportunities to accumulate more around the Support zone. You will make much more Money than before :) :) :)
Disclaimer:
Stocks-n-Trends is NOT registered with SEBI. We do not provide Buy / Sell recommendations - rather we provide detailed analysis of how to review a chart, explain multi-timeframe views purely for Educational Purposes. We strongly suggest our followers to "Learn to Ride the Tide" and consult your Financial Advisors before taking any positions.
If you like our detailed analysis, please do rate us with your Likes, Boost and share your comments
-Team Stocks-n-Trends
