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.
Gave a clear brakdown at 2950 in October 21
Price as well as time loss.
Broke down 30 WMA in March 21 -price was 850 - current price 498
Brokedown 30 WMA in Nov 21 . Price was 180 .Now the price is 93.
Broke 30 WMA in FEB 2022
Price was 783 , now 520.
Dalmia Bharat Ltd
Broke in December 21, price was 1930 , CMP 1367
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.