30 WMA -Road to Heaven Or Hell

Investing Strategies
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No Magic Happens Below 30 WMA

30 Week Moving Average is an important concept for long term investors .

Any stock that breaks 30 WMA is in danger zone. This is also called Stage 4. Stop reading the news , threads about the stocks till they remain below 30 WMA …you would be trapped .

Always be careful.

There would be counter bounce rallies in the share price , but don’t get enticed …wait and let it cross 30 WMA with comfortable volumes and let trade above 30 WMA for certain weeks before buying the stock.

Simple but powerful method for long term investors to enter or exit a stock.

Let’s see some recent downfall examples in the celebrated names :(ORANGE line is 30 WMA)

Keep in mind that it is weekly chart and we are looking at weekly closing.

HDFC AMC

Gave a clear brakdown at 2950 in October 21

Price as well as time loss.

HDFCAMC_2022-05-23_22-09-50
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Amarraja

Broke down 30 WMA in March 21 -price was 850 - current price 498

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Manappuram

Brokedown 30 WMA in Nov 21 . Price was 180 .Now the price is 93.

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Sobha

Broke 30 WMA in FEB 2022

Price was 783 , now 520.

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Dalmia Bharat Ltd

Broke in December 21, price was 1930 , CMP 1367

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A long term investor could have exited at the breakdown- paid the tax on profits and always re-eneter again at lower price and can buy higher quantity with the same money.

Buy and hold is only for : a) MF guys b) PMS c) People having lot of money and don’t worry about time and price correction d) Investors who’re dead

It is your money, learn this simple method . You can have better returns.

Keep a watch on this thread. We would give you more tips for entries and exit for long term investing.

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Most of these shares mentioned above are of fundamentally good companies and over a period of time will give good returns and these are the right opportunities to double or triple your investments in the next bull run. An end to the Ukrain war can trigger an oil price collapse, bring down the inflation with it and thereby trigger a resumption of the bull run. If we don’t buy now, when should we?

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We buy when we break out above the 30 WMA with good volumes and stay there for a few weeks. That’s the least risk entry. We retailers can’t catch the bottoms most of the times. We retailers mostly make the bottoms by selling out in frustration.

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Buy when they come above 30 WMA with volumes and trade their for at least 1-2 weeks.

Keep in mind, that stocks have to be bought to make money not becuase they are good names or good businesses.

Untill institutions don’t come with big buying in a certain stock and stock does not sustain above 30 WMA for few weeks, consider that a trap . Rest is your choice.

Point is buy above 30 WMA, sell below 30 WMA.

There are few finer nuances too that need to looked into befre buying or selling, would keep sharing, keep a watch on this thread.

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Check this thread to know more about entry/exit strategies.

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Which site to get the 30 WMA details and similar details?

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