INDUSTOWER : AT THE CUSP OF NEW BULL TREND... !?!
The stock has remained under pressure and in the Bear market for the last 3 years. The bears showed no mercy on bulls and every rise in the stock was sold into to form new lows. Stock made a peak around 480 in late 2017 and thereafter the stock has continued to decline and formed a bottom around 120 in March 2020. The bear market in the stock seems to be completed and the leadership of bulls likely to be followed for the rest of the year leading with good gains rally in this counter.
Technically, there are multiple triggers on the Weekly chart that hint at a change in trend from bearish to bullish. The chart attached below is the weekly chart of IndusTower which highlights that stock was trading in the Descending channel when the stock was under the shadow of bears and that Channel witnessed a decisive breakout in Nov 2020, which indicates a bullish trend for medium-term trend.
After forming a bottom around 120 levels, the stock has found a major hurdle around 235-245 zone which got conquered a few days back and the price has been comfortably trading above the same with bullish momentum and supportive volumes which suggests strength in price and compliments bullish view on price.
From the above chart, it is evident that the stock has surpassed two major hurdles which hint there is a high probability that the good movement in price yet to come and fruitful gains shall be delivered in the coming months.
The other chart attached below denotes the Dow Theory which helps to understand the trend in security. To explain in simple words, When price forms Lower High and Lower Lows is signifies Downtrend whereas Higher Highs and Higher lows signal Uptrend or bullish trend in price. In this counter, the stock has surpassed its previous swing higher and has formed a Higher high and without breaking its previous major low, which means the price has formed a Higher low and Higher High which denoted a probable bull trend in the stock.
From the above chart, it is visible that the earlier price was forming a series of Lower Highs and Lower Lows and Recently that series has broken and the price has begun forming Higher Lows and High Highs which signifies a bullish trend in the stock.
The next chart focuses on Leading Indicators and My Moving Average Band (M Bands). The Indicators are well trading in Bullish Territory which signals Momentum in trend. The Moving Average Band which was acting strong resistance earlier is now providing strong support to the price which hints at the strength in trend.
Thus following the above studies and Technical tools I believe, A New Bull run in stock about to begin, and bullish momentum likely to be followed for the coming months. The stock has the potential to resolve higher and head towards 300-345-410 levels in a short to medium-term time horizon. In case of any corrective decline, the demand force is expected to emerge around 251-242 levels. The above-mentioned view negates if price fails to produce upthrust momnetum and closes below 229.
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