Stock of the week!

 ASIANTILES : AT THE CUSP OF A BULL TREND

This stock has delivered exponential returns to its investors in the year 2014-2017. Every correction or any dip in price was bought into and thereon a primary trend continues. The primary bull run in this stock continued for around 4 years where price rallied from 23 to 600+ levels in a matter of about 4 years which is an exceptional and whopping gain.  

However, in Jan 2018 this stock topped out, and post that stock has failed to resume its prior uptrend and every minor rally was sold into.The 2018 was a climax year for stock as the stock continued to remain under pressure for the whole year. The stock formed a top 617 in Jan 2018 and bottomed out around 130 in Jan 2019. This means stock gave up almost 80% of the gain in one year which took four years for stock price to rally.

Post printing a low around 130 in Jan 2019, the stock turned sideways and since then had been trading in a range of 270-130 levels. This consolidation phase continued for more than one and a half years and in early September 2020 stock registered a decisive breakout from the consolidation phase.

The consolidation took a formation of Probable Double Bottom price pattern which is formed after a downtrend and considered as bullish reversal price pattern in nature. The breakout has occurred with supportive volumes and sideways correction post that is seen with declining volumes which increases the reliability of the breakout. 

The rally from the lower levels has been seen with a rise in volumes and decline with low volumes which compliments bullish view on price and hints a genuine bullish price pattern on chart.

Another tool which I generally follow and mostly I consider a must parameter for an investment. The weekly band attached in the below chart shows how beautifully and accurately price has provided support to the stock when it was in the bull trend. Every decline in price got arrested near the Moving Average Band. After a good amount of time price has given a breakout from this band and holding above the same which denotes strength and bullish trend in price. (This Average Band works quite accurate in spotting key support and resistances as shown in this stock, TO KNOW MORE AND VALUE OF THE BANDS CAN DROP ME A MAIL ON MY GMAIL ID.

Considering the above price pattern, volumes, and other technical studies, the price has the potential to scale higher in the coming weeks. The further upside momentum in stock can be seen once the price surpasses above 320 levels. In the short to medium run, the price has potential to rally towards 375-425-500 levels

The above view holds true until the price does not close below 264 levels. The strong support is visible around 287-275 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