Hello trader friends.....
I received a query from one of my followers asking whether it is a good time to buy cipla. I thought instead of saying just yes or no... why not make it more educational so that it might help other new traders also. I as a trader have always believed in buying low and selling high. Now the question is can anyone predict tops & bottoms in the market ??? ,Definitely not !!! . But if you see the above weekly chart of cipla... it made more sense buying at 350- 360 levels as price was at an area of confluence. we had a strong weekly support, 17 year old up trend line and also a channel bottom. Now cipla is trading near the top of the channel.... do you think is it worth buying at this level ???. I am not saying that it cannot go up further but i dont think Risk to reward is favourable at this juncture.
Please share your thoughts in the comments section and whether this thought process was of any use to you.and lastly as i always say.... plan your trades and then trade your plan !!!
I received a query from one of my followers asking whether it is a good time to buy cipla. I thought instead of saying just yes or no... why not make it more educational so that it might help other new traders also. I as a trader have always believed in buying low and selling high. Now the question is can anyone predict tops & bottoms in the market ??? ,Definitely not !!! . But if you see the above weekly chart of cipla... it made more sense buying at 350- 360 levels as price was at an area of confluence. we had a strong weekly support, 17 year old up trend line and also a channel bottom. Now cipla is trading near the top of the channel.... do you think is it worth buying at this level ???. I am not saying that it cannot go up further but i dont think Risk to reward is favourable at this juncture.
Please share your thoughts in the comments section and whether this thought process was of any use to you.and lastly as i always say.... plan your trades and then trade your plan !!!