One smallcap $tock to watch out for !!!

TRIVENI ENG - PROMISING CHART SETUP !!!! 

The stock witnessed a multifold rally in Jun 2015 - Aug 2017, in this period price rallied from 15 to 105 which is a phenomenal move for the stock price. However, after that stock failed to continue its outperformance and the trend turned bearish. After printing the high in Aug 2017 and till present, the stock has done nothing in terms of return. The stock has been languishing in the sideways range for the last 2 years. The long underperformance in the stock price is likely to end and the stock shall commence a strong uptrend in the coming months.

The chart attached below is the weekly chart of Triveni which demonstrates the stock price was trading in prolong probable Triangle pattern for the last 5 years. The stock registered a decisive breakout from the same with the formation of a wide bullish candle and surge in volumes which is a bullish signal and compliments bullish view on price. If the pattern unfolds as per the expectations, the price has the potential to challenge its previous Multi-Year high of 108 levels. 

The breakout from the upper trendline has occurred after multiweek consolidation near the higher of trendline which increases the reliability of the breakout and adds more weightage to the resistance trendline. 

Another chart attached below focuses on the price pattern for better clarity and understanding of the price action. From the chart, it is evident that price has been consolidating in the wide range of 50-55 points i.e from 30-85 levels for the past 3 years. Also, from last many weeks price seen trading in rectangle pattern near the upper end of the wide range which hints price seems gathering the strength for the up move to commence. However, the previous peak price made a strong attempt to break the ceiling and enter into the new trading range. For further confirmation of the breakout, I have used the Heiken Ashi candle instead of the Japanese candlestick. Going forward it is significant for the stock price to provide follow-up action and price to close above the wide range in the Heiken Ashi candle. 

The next chart attached displays the Indicators which helps to identify the Volatility, Momentum, and Strength in stock trend.

The chart shows price has registered Bollinger Band squeeze breakout on the higher side which signifies volatility expansion on the higher side which compliments bullish view on price. Furthermore, MACD has reversed from the neutral zone and has given a bullish crossover which is a bullish signal and indicates momentum in price. The last indicator is the ADX indicator with DI+/- lines, which denotes, earlier DI+ has given upward crossover to DI- line and has reversed from 20 levels with ADX line facing northward which indicates strength in price. 

Thus following the above technical studies, I believe the stock likely to attach fresh momentum and gather more strength as the price surpasses and closes above 90 levels. As discussed above the stock has the potential to challenge its previous high of 105levels and above that 128-155 are the next levels to chase in medium to the long term time period. While in case of correction, 83-77 levels showcase the strong support area. Any close below 70 levels, shall negate the above analysis. 

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