Potential Breakout on chart worth considering.

 UJJIVAN FIN SERV: RALLY LIKELY TO CONTINUE ...!

This stock has been listed recently a few years back and the sharp selloff witnessed this year brought stock price back below the listing price. This stock piqued my curiosity when last week, price witnessed a wide Gap up the opening of about 20% on the back of some positive news flow.

While analyzing the weekly chart I found stock has been following into one of my favorite setup and I dug more into the same which lead me to conclude, the rally is likely to continue ahead and the price to scale higher in coming weeks. 

The stock on the weekly time frame has been in trading in the Parallel descending channel since the inception of the stock price. It has been observed price has peaked out near the upper boundary of the channel and has formed bottom near the lower range of the channel. The recent major bottom formed in March 2020, was also formed at the lower boundary of the channel. 

From the chart attached above it is evident that historically how beautifully price has respected the Channel lines. The wide gap up witnessed in the previous week has lead the price to surpass the median channel line which acted as key resistance earlier. Also, the previous week a new sequence of Higher high and higher low has developed which denotes an uptrend in the short to medium-term time frame.

Another chart attached below highlights the action between price and volume in the course of sharp decline and recovery. The Red Box marked focuses on the decline in price with fewer volumes (small volumes bars) whereas, the Green Box marked shows a recovery phase from the lower level which sees an exceptional rise in volumes bars with the price. This hints probable big players are still in the game and recently over the course of upmove shall have added further with the rise in price.

Another chart attached below displayed the Momentum Indicator and Bollinger Bands. The Momentum Indicator is inching higher converging its average and has surpassed the previous readings high which indicate strength in price. Also, the indicator has crossed above the 0 levels after a good amount of time which is a bullish signal and compliments bullish view on price. The price has given breakout from squeeze Bollinger bands which indicates an expansion in volatility to the higher side and supports a bullish view on price.

Considering the above price pattern, volumes, and other technical studies, the price has the potential to scale higher towards the upper boundary of the Descending channel in the medium-term. While immediate resistance comes around 305-354 levels. 

The above view holds true until the price does not close below 259 levels. The strong support is visible around 274-267 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.

Stock of the week !

 

ENDURANCE TECH : CONFLUENCE OF SUPPORT !!!

The stock has been in strong momentum this year especially from April 2020, Post forming a low in April 2020, the stock has witnessed a sharp recovery from thereon. In April 2020, stock made a low around 970 and in august stock printed a high of 1180 which is a whopping rally in very little time. 

Analyzing the weekly chart, the stock has been trading in Descending channel from last more than two years. It has been observed, price has formed a top near the higher boundary of the channel and a bottom near the lower end of the channel. The recent low i.e formed in April 2020 was formed also near the lower end of the channel.

The positive or bullish point to note here is, this time the stock witnessed a decisive breakout from the Descending parallel channel which continued for more than 2 years. These signals change in the medium-term trend from bearish to bullish. The breakout was well supported by the volumes which increases the reliability of the breakout. Post breakout price experience some upmove and thereafter saw minor profit booking and seen taking support near the channel which was acting resistance earlier. (Law of Polarity)

From the above chart attached it is evident how the price has respected the channel lines. From the last 3 weeks, stock seem has formed a base near the support and this week price gave a breakout from the same which is a bullish signal. Also, the breakout has accompanied by supportive volumes. If this mentioned support held well the price likely to resume its prior trend.

Now, drawing a Pitchfork connecting its important swing points, the price has registered breakout from the median line and price has been taking near the same which provides further strong support for the stock. And, if stock materializes well, stock shall ride higher to test the upper trendline of the Pitchfork.

The stock has been trading above all major moving averages like 9,20,50,100,200 which suggests strength in price ad bullish trend in all time frames. Most of the moving averages are converging near the same juncture, as support discussed above which denotes the key support for the stock price.

The other chart attached below focuses on the Momentum Indicator. RSI earlier had surpassed above the falling trendline and now its inching higher finding support near the same. Also, RSI has reversed from the neutral zone (50 levels) and has given positive crossover which confirms the momentum and compliments bullish view in price.

Considering the above price pattern, volumes, and other technical tools price has the potential to scale higher towards 1200-1280-1400 in the medium-term.

The above view holds true until the price does not close below 970 levels. The strong support is visible around 1055-1020 levels.

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STAY SAFE STAY HEALTHY !!!

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.

DIWALI PICK !!!

 SunFlag Iron and Steel - Bullish reversal pattern breakout !!!

The Metal/Steel sector as a whole has been shinning for the last couple of months and major stocks have robust chart patterns with strong price action. However, among the metal basket, I have chosen a small-cap stock which has been on my radar from the last couple of weeks. 

The SunFlag and Iron and Steel stock topped out around 100 levels in Feb 2018 and from there on every rise in price was sold into. The stock remained under pressure and made a low below 23 levels in August 2019. The sharp selloff halted near 23/- and post that the stock went into hibernation mode. The stock traded in a wide sideways range from around 50 to 25 levels. Generally, The bears used to take control when the price comes near 50 levels and similarly bulls take the charge when price reaches near 25 levels.

After consolidating in the range for more than 1 and half year, previous week price registered a decisive breakout from the same which suggests a change in trend from sideways to bullish. If the price-pattern unfolds well as per expectations price likely to scale higher in the coming months. 

From the attached chart, it is evident how the stock has registered breakout forming wide bullish range candlestick which suggests strong bulls force. Also, the breakout has accompanied by a sharp rise in volumes which increases the reliability of the breakout and compliments bullish view on pice.

Another chart attached below shows the price Momentum indicator in the lower panel. The momentum indicator has surpassed its previous high reading which signals strength in price. Also, MACD has resumed its upmove after converging around its moving average which is a bullish signal and compliments bullish view on price.

Considering the above price pattern, volumes, and other technical tools price has the potential to scale higher towards 62-75-85 in the medium-term.

The above view holds true until the price does not close below 44 levels. The strong support is visible around 52-49 levels.

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STAY SAFE STAY HEALTHY !!! WISH YOU A VERY HAPPY AND PROSPEROUS YEAR AHEAD. GOOD LUCK !

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.

HINDPETRO : REVERSAL FROM MULTI YEAR SUPPORT !!!

The stock has been under severe pain for the last many months and even years. The stock has been in a downtrend since Sept 2017. The stock registered an all-time high of 493 and thereafter stock saw sharp correction dragging stock price lower till 163 which was formed in Oct 2018.

Post printing low of 163, the stock has been trading sideways and consolidating in a wide range. From the last more than 2 years stocks have been in a range of 150-170 points i.e 165-330 levels. Every time stock hits the higher end of the range i.e 330, the bears take control over bulls and push the price lower towards the lower end of the range i.e 165.

The stock came under my scanner post stock again reversed taking support near lower end of the sideways range and started to form bullish candlestick patterns. 

From the attached chart it is evident how the stock has reversed taking support near the lower end of the sideways range. I believe if the stock manages to hold this support the stock has the potential to test the median line of the range (Red Dotted Line) in the short to medium term. 

Going forward if stock manages to hold and sustain above the median line then one can expect the price to continue to northward move towards the higher end of the range. 

The probability of holding support and price scaling higher seems higher. Near the support, there is a sharp rise in the volume bar and is greater from the last many weeks which is a bullish signal. As well momentum indicator has given positive crossover and inching higher from oversold territory. 

Now, lowering the time frame from weekly to daily chart. On the daily chart stock has registered breakout from Inverse Head & Shoulder pattern, a price pattern that is considered bullish reversal price pattern in nature. The breakout has accompanied by sizeable volumes which increases the reliability of the breakout. 

The stock formed a bullish candlestick pattern near support with a surge in volumes, a Positive signal from momentum indicator, and a Breakout from bullish reversal pattern in the lower time frame chart which hints and increases the probability of price holding the support zone and likely to scale higher like we have experienced in the earlier instances. 

Thus, following the technical parameters the stock has the potential to scale higher towards 210-240 in short to medium-term. 

The above view holds true until the price does not close below the lower end of the range. The strong support is visible around 181-174 levels.

Thank you for reading, If u enjoyed and liked the post do share and comment. To receive the blog alerts on NEW POST, follow the blog.

STAY SAFE STAY HEALTHY !!! 

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.