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IPO Base

References

Overview

  • After listing the stock should consolidate for at least 6-8 weeks adn then break out into new high groud on good volumes
  • If this also contain pattern like CWH or VCP the it will be cherry on the top
  • there might be multiple IPO bases on single stock
  • If the first IPO base fails and second base breakout then we buy second base

Formation

  • after stock lists at premium or at a discount, on most occasions, people who bought it for listing gains will sell. this might happen a few weeks after listing or immediately on listing
  • After that stock might either fall or go into range. you don't need to buy this stock during this time. But once it breaksout with good volumes, changes are higher of it becoming a quick multi-bagger or give very good gains in a short time

When to Enter

  • when stock breakouts and make new high with good volume
  • Try to buy IPO base with strong patterns like cwh or vcp
  • stock with futuristic business model tend to do very well on IPO base breakout

When to Exit

Chart Samples