Idea about IDEA !?!
Ever since Vodafone IDEA made headlines breaking out of the 20% circuit limit to 25% - there has been Rumors & Speculations on different lines
a) Govt converting their debt into Equity
b) Govt Planning to sell stake to Elon Musk's Starlink
c) Amazon, Verizon in talks with Idea for potential takeover
d) Idea declining the above speculations....
We need to understand one thing - "NEWS" is usually Hyped, Sudden, aimed at creating a situation of FOMO (Buy) or Panic Selling. The Power of News 99% of times is very short-lived unless and until its an authentic news that the company has officially declared itself as Bankrupt.
So How do we Trade such Stocks:
Positive or Negative - whatever be the News - we always have to review the Charts to look at the Immediate Supports & Resistances. Yes - sometimes, a News is so powerful and Hyped that it might demolish one or more Support or Resistances, but that's all. After that, the Support and Resistances take the opposite side and starts to show their magic.
In the case of IDEA - On Monthly Chart - there was a Candle Body level Resistance at 16.1 and Wick level Resistance at 16.9. At the end of the day - the Price could not break 16.1 - though it just formed a small wick above - the price ended just lower
Dynamics for Tuesday:
a) 16.1 resistance is still Alive
b) Vodafone IDEA - denied all speculations - so 99.99% buyers will give up
c) At 16.1 the price has formed a Rounding Bottom Pattern but BO failed
d) So next likely pattern is Cup & Handle - How far can the Handle come down ???? 12.15 is the next major support and also 0.382 on FIB Retracement scale
Beware of SL Hunting:
a) Now if the above message is undeniable and everyone will go on Sell side - how will Operators & Big players make money ???? - SL Hunting
b) I expect the a Gap up / sudden big GREEN Candle to start on Tuesday - Luring retailers to Go Long - may be until 16.9 and there will be a Sudden Crash - gobbling all our SLs
Be Aware....Be Prepared...."Learn to Ride the Tide - Irrespective of its Side"....
- Team Stocks-n-Trends
a) Govt converting their debt into Equity
b) Govt Planning to sell stake to Elon Musk's Starlink
c) Amazon, Verizon in talks with Idea for potential takeover
d) Idea declining the above speculations....
We need to understand one thing - "NEWS" is usually Hyped, Sudden, aimed at creating a situation of FOMO (Buy) or Panic Selling. The Power of News 99% of times is very short-lived unless and until its an authentic news that the company has officially declared itself as Bankrupt.
So How do we Trade such Stocks:
Positive or Negative - whatever be the News - we always have to review the Charts to look at the Immediate Supports & Resistances. Yes - sometimes, a News is so powerful and Hyped that it might demolish one or more Support or Resistances, but that's all. After that, the Support and Resistances take the opposite side and starts to show their magic.
In the case of IDEA - On Monthly Chart - there was a Candle Body level Resistance at 16.1 and Wick level Resistance at 16.9. At the end of the day - the Price could not break 16.1 - though it just formed a small wick above - the price ended just lower
Dynamics for Tuesday:
a) 16.1 resistance is still Alive
b) Vodafone IDEA - denied all speculations - so 99.99% buyers will give up
c) At 16.1 the price has formed a Rounding Bottom Pattern but BO failed
d) So next likely pattern is Cup & Handle - How far can the Handle come down ???? 12.15 is the next major support and also 0.382 on FIB Retracement scale
Beware of SL Hunting:
a) Now if the above message is undeniable and everyone will go on Sell side - how will Operators & Big players make money ???? - SL Hunting
b) I expect the a Gap up / sudden big GREEN Candle to start on Tuesday - Luring retailers to Go Long - may be until 16.9 and there will be a Sudden Crash - gobbling all our SLs
Be Aware....Be Prepared...."Learn to Ride the Tide - Irrespective of its Side"....
- Team Stocks-n-Trends
- Team Stocks-n-Trends
- Telegram: telegram.me/stocksntrends
- Telegram: telegram.me/stocksntrends
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