Dear Readers,

There are are four different type of stock phases in the stock market.

Bull means Buying

BreakOut- Heavy buying without any technical resistance

Bull Correction- Price correction

Bear- Hedging

 

What is a Bull Stock?

Bull cycle is considered when buyers are willing to pay higher price for a stock. Generally, there are more buyers than sellers in the market. It leads to higher price upward movements.
There could be many reasons for a Bull cycle i.e. great earning report, beating market/analyst expectations, positive future growth, rating upgrades, strong fundamental, technical, overall Bull market or sector or global reasons for a Bull cycle.

What is a Bull Correction Stock?

Stock is considered in Price/Bull correction when price drops down from the last Peak price. Generally 5%-14% is considered good price correction. Investors considered this as a good opportunity to invest money in the ongoing Bull stocks.  This is also consolidation process where investors and FIIs, DIIs slowly keep buying and consolidate there stock position.

There is always risk of going Price correction stock into Bear Cycle if price goes down more than 20%.

What is a Breakout Stock?

Breakout stock situation is purely technical indicators driven. Whenever certain technical parameters fulfill the certain conditions, like Moving averages crossing each others. Stock tend to rise sharply in a few days to few weeks. Generally price 5% to 20% can be increased in few weeks.

What is a Bear Stock?

Bear cycle is considered when sellers are willing to accept lesser money for a stock. Generally, there are more sellers in the market than buyers. It leads to downward price movements for a Bear cycle, bad earning, negative future growth, rating downgrades, weak fundamentals, higher debts or interest payment, legal issue, technical, overall Bear market or sector or global