Do stocks make a textbook move? Well Here’s one example that has made a picture-perfect textbook move over the last 4 years.
Case Study: IPCA Labs
Source: Chartalert.com
Phase 1-2-3
Pharma became a sector to avoid for investors way back in 2015. IPCA Labs stock was no exception and it declined from 900 levels to levels of 405-410 by June 2016. It then managed a big Bullish candle bounce from that level only to find tough resistance near 650. It once again declined to levels of 405 by August 2017. It finally managed a breakout above 650 in April 2018. What stock accomplished during this phase: A bottom in place at 405 and a breakout > 650
Trade that worked: Buying IPCA Labs on double dip at point (2) for target of 650. It was a 60% trade that got initiated in August 2017 and achieved its target in Feb 2018
Phase 3-4-5
IPCA Labs breakout > 650 in Feb 2018 set itself for target of 900. But the bad market environment capped its upside. The stock retested 650 and a moving average support in October 2018. So, a breakout strategy did not produce any return in 2018 but the consolidation meant the stock was ready for upside and just waiting for the market to become bullish again. The stock made a good progress from 650 to 900+ over the following 4 months
Trade that worked: Buying IPCA Labs on pullback after breakout (4) for target of 900. It was a 38% trade that got initiated in October 2018 and achieved its target in March 2019
Phase 5-6-7
IPCA Labs breakout to new high > 900 in Feb 2019 set itself for BUY and RIDE. The stock consolidated for bulk of 2019 before pulling back to moving average support and taking off.
Trade that worked: Buying IPCA Labs on pullback (6) at 900 for no target. It was a trade that got initiated in October 2019 and the stock is up 37%. It continues to be one of the strong leadership stocks that can go to great highs over the next 12 months.
Please do your own due diligence before making any investment or trading decisions