Fifty Percent - Is the glass half empty or half full

Is the glass half empty or half full ?

It depends on our optimism or pessimism at that time.

Same is the question with stocks and index.

Is it a dip to be bought or is it a opportunity to exit ?

In this case the answer again depends on the optimism or pessimism at that time in market, but with the help of technicals one should be able to make that call with some comfort.

Midcap 100 Index

Above is the chart of Nifty Midcap 100 Index which made a Life high on 15th Jan'18 and gave a sharp dip to 18701, that's a 14% dip on Index level in 15 days.

It was a sharp dip, which was followed by a equally sharp reversal which ended at 50% Fibonacci retracement. Which leaves us to same question again - Is it a dip to be bought or is it a opportunity to exit ?

Anyways now anyone can answer looking at the current levels that it was a exit opportunity,

But lets focus on the learning hear, If we see a pullback in any index / stock as sharp as this and it ends at 50% , its mostly always the exit opportunity.

Lets take another example here.

Reliance: -

Stock saw a fall from 1329 levels to 1025 levels (23%) and gave a bounce back to 1179 at 50% Fibonacci retracement. Which leaves us to same question again - Is it a dip to be bought or is it a opportunity to exit ?

Anyways now anyone can answer looking at the current levels that it was a exit opportunity,

But lets focus on the learning hear, If we see a pullback in any index / stock as sharp as this and it ends at 50% , its mostly always the exit opportunity.

Reliance

Disclaimer: - No Positions