My Technical Analysis Diary. . . . .Invest in stocks only after you have done your own Risk Management
Can you pl explain the basis for the Stop Loss of 950~975? Thanks
As you can see the assumption here is the "trend line" which is acting as the support. ie from this imaginary line the stock price is expected to rise. The buy call is given assuming that the trend line stays intact and the stock will again bounce from here. Once stock price moves below the trend line then the ASSUMPTION is violated hence the prediction is wrong and stock might not move up as expected.You can see that 950~975 level is below the trend line. Hence if Suzlon achieves 950~970 level the assumption is wrong and we need to exit from the stock.
Now new low of 960 should be considered as stop loss. As the time have passed the stoploss have to be raised
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