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Pc jewellers QnA

The stock recorded an all time high of 600 in late 2018. After that it crashed down due to some negative news . as of may 31 , the scrip trades at 77 i.e. stock depreciated about 87% , making it one of the worst performing stock.

However , Pc jewellers delivered a return of around 100% in April , 2019 ( movement from 80 to 163 ) but again depreciated in may and currently trades at 77 . for some time , its likely to stay in the range of 40 - 80 with some random unsustainable spikes.

Q )Pc jewellers by 2020 ?
Most probably in the range of 40-80 , unless major restructuring.

Q ) How will it again reach its all time high ?
The stock should rise gradually till the levels of around 250 as it did in 2014 - 16 . major resistance will be in the range of 250 - 280. Once it crosses this range with good momentum , the next stop perhaps may be the all time high . but this journey might take about 5-8 years .

Q )Entry signal in Pc jewellers ?
signal 1
The bull ride will likely to take place when it breaches the level of 290 with certain momentum. Hence entry point will be 290

Signal 2
Or when it further crashes down to its all time low around 30 , and takes this level as support and gradually rise from this level or consolidate for about 4 - 5 months.

Q) what to do at current levels ?
Neither long or short. Since the trend isn't clear.

Q) why it didn't continue the April run ?
For about 70% or more ( perhaps ) of the total stocks , the bull run has some preceding conditions -
a. Stock should be in a range for a minimum of around 3 years.
b. No such random unsustainable spikes

The above two conditions were absent in case of Pc jewellers.

Q) what if the April run continued ?
Let's take a hypothetical situation , that
Stock gave 100% return in may , 2019 , which means  the stock trades at around 320 ( going from April high of 163 to 320 , assumption of 100% appreciation )
After that - the probability is high , the stock would again crash down because its generally not the way of upside run.

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