Browsing: Emerging Market stock

When Tata Tea reached the 430 level a few days back, it was clearly time to buy. Not only was the overall market in an oversold condition, this particular stock had reached a 123.6% Fibonacci projection of its previous large decline. From the 430 area, we have already seen over 30% gain, and it is natural to start wondering where we will run into some profit taking.

Every few days we will look at an emerging market stock. Dr. Reddy’s Laboratory has suddenly come to the limelight today. You will observe from the chart that this stock has been trading between two parallel lines for several days. Only once did it violate the lower line, but it closed higher