Godrej Properties : At inflection point !!

 

Godrej Properties: Set to resume its prior trend !?! 

This stock has remained one of the best company comparing to its peers in terms of Goodwill, Company Management, Company Fundamentals, Price Trend.

This stock has produced good returns for their investor in last 5-6 years. The stock price has grown multifold in the last 5-6 years and likely continue to perform well going forward.

Like most of the stocks, this stock also witnessed sharp selling from Early Feb 2020 till late March 2020. In absolute terms price tumbled heavily from 1168 to 505 levels. 

Analyzing the weekly chart of the stock price, it seems it has been trading in the Ascending parallel channel. The peak is formed near the Higher end of the channel where the bottom has formed near the lower end of the channel.

From the attached chart, it is evident how the price has traded in the channel and how the price has provided importance to the median line of channel historically.

Recently, the price has consistently found support near the Median line of the channel and has been consolidating near the same which suggests "the lull before the storm".

Also, near the same juncture price has accompanied with 20, Exponential moving average support which adds further weight to the support area. Looking historically this moving average has been respected by price nicely.

The stock price is trading well above short, medium, and long term moving averages which define bullish trend in price.

The volume activity seen recently is quite promising and compliments bullish view on price.

The chart attached above displays technical indicators along with a price chart.

The Momentum indicator attached beneath the price chart has entered into bullish territory which is bullish signal and compliments bullish view in price.

The Price-Volume indicator displayed in the last panel has reversed swiftly from 0 reading which is a bullish signal.

Following price action and indicator, positioning price has the potential to scale higher to challenge its previous high and test the upper boundary of the parallel channel line.

The above view holds true until the price does not close below 830 levels. The strong support is visible around 885 - 860 levels.

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Disc. The above-shared analysis is solely my view as per my understanding and knowledge and for educational purposes. I will not be responsible for any loss or gain incurred.