Breakout is the starting point of a Multibagger journey. Let me share two examples:
1. Rain Industries breakout > 65
I covered Rain Ind stock the week it broke out
Here’s how the breakout looked like back then
Source: Chartalert.com
That’s not all – when a stock breaks out, then every decline results in a new opportunity. Here’s one such opportunity when stock declined to 100 dma
Rain Ind at 100 dma: The stock has done all the right things so far pic.twitter.com/WAxudNgXGH
— Deepak Singh (@smarket) June 22, 2017
Now the stock has been 5x within a year -that’s a solid Breakout Multibagger move
Lots of you email me about booking profit and you understand why I hesitate to answer such questions 🙂
Multibagger Case Study 2: Sterlite Technologies breakout
Source: Chartalert.com
Sterlite Technologies broke out above 110 in Jan 2017 and see what has happened to the stock since then
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