Quess Corp: What Was Price Action telling us?


This is archived post of Quess Corp which we did for BNP Pro members at October end. This is just to share how we thought about the idea and how it is working out. This is not a call on stock at current prices. Stock is already up by 18% from below 400 to 470+.

Update – Stock made highs of 725. Up from 400 to 725 in last 3 months. 80%+. If you want to learn and earn – Join here.

Here is a nice looking chart of Quess. A company owned by Billionaire Prem Watsa of Fairfax (same guy who has big stake in 5Paisa and other IIFL group companies, FairChem Specialty, CSB Bank etc). 

Fundamentally very sound company. Today results came out which are more than decent. Quess also owns another listed company Allsec which by the way has interesting shareholder C Mackertich in public shareholders list. C Mackertich is same company operated by Ajay Kayan (Ajay Kedia shown in Scam 1992 Web Series) and had many cases against him and recently he got acquitted. A member of bear cartel from kolkata. 

Anyway, as you can see in the chart stock is just trading above dead cat bounce level of 398 made on 29 June. Trading above 50 SMA and 50 SMA is well above 200 SMA. 

As you can see by two pink lines the pattern closely follows the Binet’s formula. Do not get bogged down by the fancy name of Binet, it is just old pattern we refer as snake pattern.

You can see the range of stock price getting squeezed for a month now. Last time it happened for 2.5 months and stock did 380 to 450 in no time. 

Then what is the catch here? 

Catch is yesterday stock broke down badly. Opened at 403.30, made high of 407.95 but low of 364. But good thing is it closed at 403.85. 

So broke down but recovered by end of the day. If it did not break down yesterday it would be much better. 

Very low risk entry it is offering. SL can be 390 on closing basis which does not mean wait for next day to exit. On same day if around 03:25 stock is trading at 390 or below then watch it and exit in last 2 min if it stays below 390. Because next day it might open -5% or -10% who knows given the volatility.

It can work or fail in short time. It is unlikely to test the patience.

Disclaimer: Posts on the platforms of BN are our perspective on the market. These are purely meant for learning purposes. The perspective provided should not be construed as investment advice or solicitation to trade. We may have positions in the stock mentioned. You agree to make no trade relying on the above contained information fully or partly. By using the content, you agree to these T&Cs.

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