When a stock breaches a moving average line of resistance, then it creates a possibility of a durable turnaround and hopefully an explosive momentum move. I have explained this in the Science of Stock Price Action Turnaround Chapter of what happens when a stock after stalling at MA Line of resistance breaks out.
Can Balkrishna Industries make the follow-through move?
Source: Chartalert.com
The Chart is a classic turnaround chart and the stock today has bounced from where it should have bounced. The stock has full potential to surprise on the upside. But as I always say, we don’t know for sure and if the stock does not behave as we expected – we should always move out of the trade. The stop loss should be below 800.
Please do your own due diligence before trading/investing.
Update: 14 Dec 2019 – The stock now
Balkrishna Ind