Ambuja Cement: Longer Term Investment in Superior Profit Way

Investors want to buy stocks Low and sell High.

Is it difficult to do? Yes. But the difficulty comes not so much from the Market. It comes from not having easy to use technique that works. And repeating the technique over time without emotion.

Here is one example where one could consider for buying today (1st December 2015). Ambuja Cement.

How did I decide on this stock?

One criteria I use – before anything else is whether the company is a robust company. Ambuja Cement passes the criteria. It is a very large cement manufacturing company in India owned by even larger Holcim.

Second criteria – for longer term investment – is that the stock should fall considerably. But start to go up. Ambuja cement is down 11.9% this year. Compared to India market Index Sensex which is down about 8.35. However, from recent peak of 287 (on 6th Mar 2015), Ambuja Cement is down to 198.9 on 30th Nov – a decline of 30%.

Third criteria – the stock shoudl start to go up.

Today – 1st December – this criteria is also met. As we can see from Superior Profit “At A Glance” chart below – Weekly Backdrop color is cyan – Bullish; with a Bullish shape Weekly Candle with lower tail. Daily has given a Go With Flow (trend following) Bullish signal as of 10:30 AM India time.

Stop loss would be narrow – either below recent low.

Will this investment make profit?

We are not sure. We never are. As we are not fortune teller.

However, all the indiations are bullish. And probably as good a set up as we can get to Buy a solid company at reasonable price while it is just startig to go up.

And I would guess that some of our Superior Profit investors who used the Sonar program to identify the opportunity today have taken a Long position by now.

What would you do?

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