BANK SECTOR: mrtq13 (01-Nov-2008)

Could anyone imagine, even last year, that the market king sector like Bank could go to hell like we see now...............!!!!

That is a terrible blow !!!
Now I am freaked out...........I give an example of bank below. It is MTBL. See its condition. It has come down to its lowest of four years.............WOW...........
That is really terrible. Do banks deserve that much low price???And where are investors..............?? Why aren't they investing in banks?

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But well,let's apply two theories of TA in banks :

Theory one : what goes down must come up in stock market.
Theory two : Buy at support and sell at resistance.

Cynic may say,it is incidental. But have a look at the high price of 2005 and 2008 of MTBL. It is interesting to see that During these three years,both times mtbl just hit at the resistance and started to fall. So,the theory to "sell at resistance" worked there.
.................

Now,we see that MTBL is gonna hitting its lowest price of four years soon. So,the theory to "buy at support" should work there
..............

So,we have got a bargainable price in this stock. But will our first theory work? It is important. Because even if buying at support is a great thing in stock market. But what goes down(theory one)will come up if the overall market becomes bullish regarding the stock.

Ummmm............We have got the entry level in banks now(almost). Banks are at their bargainable price.Now we have to wait for the overall bank sector to become bullish.Now I tell you a personal thing. I am feeling greed to enter into banks in near future.

Gash...............I should kick myself..........

A lot of things are gonna change in coming months : world political movement(connected to U.S election),our country's election,the control/change of economical crisis in all countries,banks' declaration of our country,and so on..........
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Now to the question : where are the investors for banks............??

Well,the investors are in buy mode....Have a look at the block trading............ Whenever block trading takes place,two things happen next(may take some times)..........

1. the shares are getting handed over. Directors changing positions.
2. the stock is gonna rise sooner or later.

I have seen this in Bxpharma when it was near 60 taka..............
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Nothing to fear................. We would know what is gonna happen to banks. And surely,we will be the ones that will be able to understand quickly what is going on in banks.............Just need some watchful eyes...............

By the way,what if someone bought MTBL around 600 on 19/Dec/2007 and held it throughout the fall? He might have lost all his investment till yesterday.
That is why,it is never wise to hold on to a falling stock............Because you never know the future. Nobody knows.............................
Cut your loses short,when things don't work!

TC!!

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