Case Study: Mphasis
Mphasis has delivered a textbook return of 55% over the last 5 months as two factors helped it:
1. Technology theme
2. Breakout and Pullback
Mphasis Weekly Chart
Source: Chartalert.com
Mphasis stock broke out above 790 around 25th January 2018. [Excitement time?]
But for two months – stock did nothing great. It pulled back near 800-820 around March end 2018.
The stock then took off and has not looked back. Mphasis stock is now up 55% over the last 5 months.
There is predictable script breakout stocks follow and lots of times I see tremendous impatience when the breakout stock does nothing after breakout but time and again we have seen the importance of patience and holding on to the breakout stock atleast for 8-10 months post breakout.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers