Lessons of Trading by News - MMTC - "Let it" or "Delist it" ???Time and again the stock market gets some knee jerk reaction from Investors based on some Hot News. But most news are shortlived and forgotten in forthcoming days.
One such interesting counter is MMTC - A PSU Mineral Trading Company with 89% stake with Govt of India.
Technical Analysis:
Monthly - Inverted Head and Shoulder pattern indicating a Multi-bagger return
Our initial position was at 61.55 levels and booked profit around 87-88 in just 1 month
The primary reason to book profits was due to a Hot News in October from Govt that they are going to De-list the company. The counter eroded all gains within same month and fell below our entry point. For next 2 months - there is no News about de-listing - no progress - and all the Hype settled down and now when I look at the charts - its back to its beauty. You won't even remember that something happened in Oct looking at the chart now.
The Original Tech pattern (Inv H&S) is still perfectly intact
MMTC is once again on the verge of Breaking Out the Inv H&S pattern.
It has to settle above 68 WCB for neckline BO confirmation
Further it also has to close above 72 WCB for resistance BO and further upside
CAUTION: New Entrants / Safe Players - please AVOID this counter. There is still no clarity on delisting process from Govt. Existing players hold for further gains and make most out of this until you see a significant reversal
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