State of the Market|Reading the Psychology of the market

Did you notice Spice Communications mega move yesterday? It reminded me of similar move last year. The Big question - Will History repeat itself?

Let us look at technical picture of the stock

Spice Communications Weekly Chart

Here are some observations

1. Spice Communications made a mega move last Feb 2009 from price of Rs. 25 to Rs. 90 in just a span of three weeks.
2. Since then, the stock has gone sideways vacillating between 50-55 on the lower side and 80-85 on the higher side.


Source: ChartAlert [www.chartalert.com]

3. Yesterday, stock zoomed 18% on huge volumes. It quickly reminded me of the move last year.
4. Will History repeat itself? I do not follow the company fundamentally and hence i have no idea on what is driving the stock prices up
5. The observation is purely based on price behaviour.
6. What makes the price move more exciting to follow - timing. [Feb = Month of Spice Communications ]

I hope you found this article useful. Do share your views. As always, please note this is not a trading recommendation.

Disclaimer - The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writer