Update 4 - Commercial Bank Plc - Buy when others fear, and when blood is on the street

Price action in Commercial Bank is still bleeding. We have completed 35 days and 22 Market days in this strategy of Stock Accumulation. We have accumulated 60,000 shares at an average of 97.27 in the process. The sudden pessimism in the overall market due to the quietness seen as we are passing through the new year has brought a lot of uneasiness into the market. This pessimism is good for those who would want to keep accumulating any stock that they are following. But certainly not ideal for those who would want short term volatility. Therefore this negative period in the overall sentiment of the market is ideal for the strategy we are covering in this post. The market noise surrounding this counter is all bearish, hence this strategy is not for noise traders. If you are one of them do not read this article. The present low for the counter is 92.00 on the 8th of Jan'20. That was the day after Iran sent missiles to US Bases in Iraq. Markets world over fell but the Colombo Stock Market was one of the worst performers with a fall of 2.4%, whilst the US futures and all the Middle Eastern Markets  including Iran closed above that. COMB compared to the ASI didn't fall that much, but took a hit. The quietness prevailing in the market was the biggest cause for the Panic Button. Chart given below explains the story further.

If you are interested to read the previous post you can access it here....