Dr Reddys Lab
The chart shows a formation of a positive divergence in HPI and MACD.
The stock does not break its 200 days EMA.
The Stochastics rises from its Oversold levels.
The ADX negative trend is seen loosing its steam.
The perfect entry would have been on 26th August 2013.
The red candle on 21st August broke the lower BB. But this was not a trading candle.
[Click on the chart to Enlarge]
LESSON : Dont rush into a trade based on the movement of a single candle. Wait for the potential entry when majority indicators form a similar alignment.
