You found a company with an amazing product. Strong demand was fuelling big earnings and sales growth. Mutual fund sponsorship was top-notch, and the stock was in a bullish technical pattern.
But the stock went lower soon after you bought it because you were wrong about the direction of the general market. Continue reading “Five Investing Mistakes to Avoid in a Down Market”
No, you should not be concerned if a stock’s Relative Price Strength Rating hits a new high when the actual stock price is not at a new high. In fact, it is generally a positive sign when a stock’s relative strength (shown either by the RS Rating or the relative strength line) goes into new high ground prior to the stock breaking out of it’s base. A high relative strength indicates the stock is performing relatively well in the current market environment, which is an indication of demand.
Thyrocare technologies extended its winning streak to two weeks despite a weak market sentiment. It gained in all the four sessions of the week and closed 3.5% higher. It closed 6.5% below its pivot price of Rs 711.
Maruti slipped 4.1% today on above-average volume. The stock closed below Rs 7,000 for the first time since July 2017. It extended its losing streak to six weeks and closed 32% below its all-time high. With a weak Price Strength Rating of 42 and poor Buyer Demand Rating, Maruti Suzuki has breached all key support levels.
ICICI Bank gained 4.2% after its board accepted early retirement of Mrs. Chanda Kochhar. The stock retook its 200-day line and closed marginally below 50-day line despite a weak market sentiment that took Nifty 2.4% lower.
