SUZLON at support on trendline

As you can see the Suzlon have fallen to the long term trendline. I expect it to take support nr 1000 level. Stop Loss of 950~975 can be considered.


gacsekar said...

Can you pl explain the basis for the Stop Loss of 950~975? Thanks

yndesai said...

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.

yndesai said...

Now new low of 960 should be considered as stop loss. As the time have passed the stoploss have to be raised