itc breaks down below 200 dma - what should one do?
DESCRIPTION
ITC has broken down below 200 dma How frequent is this event What should one doTRANSCRIPT
Deepak Singh
Stateofthemarket.net
Dealing with ITC breakdown below 200 dma
Breaking News: ITC breaks down below 200 dma
How Frequent is this event?
Chart Source: Chartalert.com
ITC broke down below 200 dma only once since March 2009
What happened on Breakdown in 2011?
Chart Source: Chartalert.com
Current Breakdown
Chart Source: Chartalert.com
What should one do?
• ITC breakdown appears to be more market driven than stock driven
• It’s breakdown reflects more on FII’s stance on India. If market sell off continues – then ITC may see more selling and may remain below 200 dma
• It’s only if ITC recovers and sustains above 200 dma – one should look to add the stock back in the portfolio else AVOID because ITC is over owned stock and may bear brunt of India specific selling
• Right now, ITC is Avoid and should be on wait and watch category.
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