BALRAMPUR CHINI : SWEET DAYS AHEAD !?!
This stock has been in my radar from last many days and looking at previous week price action it seems stock likely to attract bullish momentum going forward.
Looking at the longer term time frame chart, the stock has been forming one of my favourite pattern. The readers who are reading my blogs regularly will get the clue which pattern i am talking about.
The weekly chart attached below shows the stock has trading in long sideways parallel channel. The stock has been following this channel since last more than 2 and half years.
Generally, stock forms bottom near lower end of channel and sellers take over bulls near higher end of channel line and drops the price lower.
Recently, stock witnessed strong run up finding support near lower end of channel line and in this process price gave breakout from the median line after consolidating near the same for couple of weeks.
The breakout has emerge with wide long green candle and supportive volumes which signals bulls force/strength.
The stock has been trading above 200 Exponential Moving average which hints strength in trend.
The Price-Volume indicator attached beneath, has reversed finding support near 0 reading which compliments bullish view in price.
Following the price action and other indicators positioning, the stock price has potential to test higher range of the channel line & challenge its previous swing high.
The above mentioned view holds true till price does not close below 122 levels while the strong support is visible around 136-131 levels.
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| Balrampurchini weekly chart (Click to Enlarge) |
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Disc. The above shared analysis is solely my view as per my understanding and knowledge and for educational purpose. I will not be responsible for any loss or gain incurred.
