I've learnt from personal experience that it never pays to buy stocks that gap down in price. A stock like NHC has been significantly re-rated by the market. We can also infer that institutional fund manager support has now weakened.
Gaps occur after news releases, or broker downgrades. It is more common for a strong stage 2 stock to gap up on news. Conversely, with weak stage 4 stocks trading below a 200-day moving average, price will more likely gap down.
The key to successful stock market investing is to have no emotional attachment to any company. This enables no quibbling when a trailing stop loss exit needs to be implemented. There are too many strongly trending stage 2 companies to bother over having to exit one stock. I maintain a watchlist of strong stocks as potential buys for immediate use just in case one of my portfolio stocks like NHC fails me badly.
An NHC exit just below $4 is excellent. In hindsight I should have acted on the first day plunge, but instead waited until the next day.
The two technical stock advisory firms I am subscribed to have exited NHC.
If anyone needs to know my current portfolio, it is included in the My Watchlist page at:
https://hotcopper.com.au/account/stage-2-uptrend.395760/
News: NHC UPDATE 1-Australia's New Hope clears environmental hurdle at coal project, page-16
Add NHC (ASX) to my watchlist
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Last
$4.69 |
Change
-0.040(0.85%) |
Mkt cap ! $3.964B | |||
| Open | High | Low | Value | Volume |
| $4.73 | $4.73 | $4.65 | $8.107M | 1.732M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 1000 | $4.68 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $4.69 | 25439 | 4 |
View Market Depth
| Last trade - 16.10pm 14/05/2024 (20 minute delay) ? |
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Last
$4.68 |
Change
-0.040 ( 0.95 %) |
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| Open | High | Low | Volume | ||
| $4.71 | $4.71 | $4.65 | 498671 | ||
| Last updated 15.59pm 14/05/2024 ? | |||||
| NHC (ASX) Chart |