are you a part of MAJOR TRAP
after this 60% recovery from the bottom many retailers got excited about Adani enterprises and had made position in Friday market, if you are also among them than read this article carefully.
let me give an case study of Vedanta last year in the month of May Vedanta fall by 25% within 8-10 trading session it than started consolidating, for some days in ascending triangle pattern many people thought since this is an demand zone the stocks will not fall further and will start an upward- journey, but it was not a consolidation it was an TRAP for retailers. those who made position saw an another 25% fall,
notice that now it is more than 8-10 months the stock has not recovered it previous high.( for more clarification see chart)
{ NOTE;i have used Vedanta example just for reference}
now something similar is happening with adani enterprises , the stock has fallen 60% so drastically and made 60%recovery after 34% more fall (making a total fall of 74%).
if you notice the volume on friday market the volume was more than previous days even after that the stock was not able to cross the resistance area on weekly time frame and closed taking resistance at 5 min time frame, making bearish sentiment.
see if you are still bullish in adani than let me put some more data in front of you, 4- more stocks of the group( green, power, transmission ,total gas ) were closed at lower circuit making a another bear sentiment, if the group has to be bullish than remaining stocks should also been closed in green
so what i want to say should that you should sell you position , OfCourse not , i just want to say before entering any stock make risk assessment and dont become a part of trap seeing few green candles.
these are just my views , make your own analysis , share your views in comment and do boost this post.
let me give an case study of Vedanta last year in the month of May Vedanta fall by 25% within 8-10 trading session it than started consolidating, for some days in ascending triangle pattern many people thought since this is an demand zone the stocks will not fall further and will start an upward- journey, but it was not a consolidation it was an TRAP for retailers. those who made position saw an another 25% fall,
notice that now it is more than 8-10 months the stock has not recovered it previous high.( for more clarification see chart)
{ NOTE;i have used Vedanta example just for reference}
now something similar is happening with adani enterprises , the stock has fallen 60% so drastically and made 60%recovery after 34% more fall (making a total fall of 74%).
if you notice the volume on friday market the volume was more than previous days even after that the stock was not able to cross the resistance area on weekly time frame and closed taking resistance at 5 min time frame, making bearish sentiment.
see if you are still bullish in adani than let me put some more data in front of you, 4- more stocks of the group( green, power, transmission ,total gas ) were closed at lower circuit making a another bear sentiment, if the group has to be bullish than remaining stocks should also been closed in green
so what i want to say should that you should sell you position , OfCourse not , i just want to say before entering any stock make risk assessment and dont become a part of trap seeing few green candles.
these are just my views , make your own analysis , share your views in comment and do boost this post.
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