This is an Absolute No-Brainer.
- Rohit Musale, CFA
- Jan 6
- 2 min read
This is the daily timeframe chart of Avanti Feeds and the first thing I look at is not fundamentals, not stories, not ratios.
I look at the moving averages.
The 50-day, 150-day, and 200-day simple moving averages are not aligned.
As per Mark Minervini’s trend template, this alignment is non-negotiable:
Price must be above the 50-day
50-day must be above the 150-day
150-day must be above the 200-day
That condition is clearly violated here.
I’ve highlighted the current moving-average structure with a red box on the chart, and that alone tells me one thing:
This stock is not in a confirmed Stage 2 uptrend.
Pale yellow line - 50 DSMA
Green line - 150 DSMA
Red line - 200 DSMA
This single reason is enough for me to reject the stock immediately.
Now, let me be very clear.
I am not saying this stock cannot go up from here.
It might even double from current levels. Who knows !
That is not the point.
All I know is that it does not meet my existing criteria today.
And because of that, it simply does not belong to the universe of stocks I am looking for.
So I prefer to stay away.
Why would I waste time doing liquidity analysis, fundamental analysis, market analysis, or comparative analysis on a stock that is technically weak as per my system?
That makes no sense.
Every day, a filter can throw up 60 to 100 stocks.
If you spend even 5 minutes doing all kinds of analysis on every stock, you’re burning time, energy, and focus.
Instead, your system must have non-negotiables.
Rules that allow you to reject a stock in seconds, not minutes.
Another visual clue on this chart is that the stock has spent most of its time in the lower half of the base.
It has barely entered the upper half, and it hasn’t spent meaningful time in the upper quarter of the base.
That’s another reason to stay away.
Developing the skill of quickly moving through stocks is a massive edge.
If you do daily filtering, the next day the same stock will appear again, and you’ll already know it doesn’t meet your basic criteria.
You won’t even spend a fraction of a second on it.
That’s efficiency.
The moral is simple:
The more clarity you have in your criteria, the more high-probability setups you’ll find.
We don’t know where price will go.
All we can do is manage risk and focus only on situations that truly deserve our time, money, ideas, and attention.
Regards,
Rohit Musale, CFA
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