Astral positional strategyEntry:
Look for stocks, including Astral Ltd. (NSE), that recently crossed their 52-week high. This suggests potential upward momentum.
Stop Loss:
Place a stop-loss order 8% below the entry price. This limits your potential downside if the price moves against you.
Target:
Aim for a profit target of more than 15% above the entry price. This offers a good reward-to-risk ratio (assuming an 8% stop loss).
Additional Considerations:
Confirmation: While the stock crossing its 52-week high is a good starting point, consider additional confirmation for the uptrend. This could include technical indicators like moving averages or relative strength index (RSI) showing upward movement.
Volatility: Be aware of the stock's typical price volatility. An 8% stop loss might be too tight for a highly volatile stock, potentially leading to unnecessary exits.
Risk Management: This strategy focuses on a single price target. You can consider a trailing stop-loss to lock in profits as the price moves up or take partial profits at specific intervals.
Backtesting: Before deploying this strategy with real capital, consider backtesting it on historical data to assess its effectiveness and tweak parameters like stop loss and target percentages.
Disclaimer: This is a basic strategy and should not be considered financial advice. Always do your own research before making any investment decisions.
