This diversified bank (ADR) was a high-flier, and it seems to be losing steam.


This is an Indian stock and IBN is the ADR listed in the USA. As CUE systems can be used to analyze the USA as well as global stocks, I can make an accurate analysis of the ADRs like IBN as effectively as that of any US-based stock.

1) I check the industry based on India's sector-industry rotation. Not based on the USA market sector-industry rotation. The industry is very week indeed.

2) Looking at the Indian ticker symbol ($ICBK.NS / $ICICIBANK), it is very close to the 52-week high. Long holders have a significant profit and they may protect or book some profit.

3) The stock is very slowly moving down. Very slowly. Not much downward force is there, at least not yet.

4) Today, most of its peers are down.

5) Overvalued stock with (6) negative earnings growth for both quarterly and yearly periods.

7) Looking at the Indian ticker (the market is closed now for India), the weekly chart ended with a bearish shape. (8) The daily displayed a bearish Headwind possible reversal signal a few days ago and (9) today the Traffic Light daily candle color turned bearish (red).

10) The USA ticker ($IBN) is similar to the Indian ticker symbol (duh!) on At A Glance weekly-daily chart template. The weekly is showing a bearish shape. (11) The daily displayed a bearish Headwind possible reversal signal a few days ago and (12) as of 10:50 AM EST, the Traffic Light daily candle color turned bearish (red).

Long position holders may book some profit or apply a trailing stop to protect profit. Short traders may look for a low-risk shorting opportunity. The next earnings date is on 25th Jan 2020. An options play that expires after the earning day may be a sound choice.

I use my systems to make a decision. I don't look for information from any other external system whatsoever.

I came to know of a site that does stock scoring and gives buy/sell recommendation and even shows seasonality - all for free.

As I came to know of the site only recently, I thought of checking out their analysis of IBN. Here it is. Very different from my view. I am not commenting on whether the review is right or wrong. There probably is no answer to that. Only that the analysis and, more importantly, the conclusion is very different from the 360 study I carried out above - on the same day at the same time on the same stock IBN.

I am sharing this to illustrate the need to have a crystal clear checklist-based approach to decide whether to buy or sell or do nothing. If you look for information from the Internet to determine what to do, most likely, you will end up being confused or will end up reinforcing a bias you already had. Neither is a recipe for success in the market.

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Top or bottom catching can be done as confidently as breakouts or trend following trades as my live forum posts show. Here is yet another example of that.

1) I shared the Short idea on $IBN eight days (five trading days) ago. I did that in spite of a financial website analyzing the stock to be a buy because I use my own unambiguous system to trade. I don't use websites to tell me what to do.

2) Today IBN reached Lower Boundary and I booked my profit.

This trade too gave a much larger profit than the risk taken in the trade.

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Perfect timing for the exit, as it was for the entry.

In swing trading, one of the keys to success is to exit in a timely manner.

That requires a pre-defined profit-taking plan. I had that and executed that in $IBN.

Right after I booked profit (as shared in the forum at that time), the stock reversed up.

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Disclaimer: This site is for educational purposes only, explaining the use of CUE systems and techniques. It is not for trade advice. Trading involves risk. You and only you are solely responsible for the outcome of your trades.

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