Targets : 4850-5120 Buy Range : Above 4500 Stoploss : Below 4090 Duration : 4-5 weeks
The most important observation in the share price of Blue Dart Express is that the stock has formed a bullish “Double Bottom” as the lows of May 2017 and June 2017 are almost identical at around Rs 4165 signalling a reversal of the corrective trend prevailing since March 2017 at high of Rs 5300.
The stock has recently registered a resolute breakout above the short-term falling trend line resistance joining immediate highs of March 2017 (Rs 5290) and June 2017 (Rs 4500) currently placed at Rs 4325 levels which will act as major support for short term.
Current price action scenario is similar as of previous “Double bottom” formation during the period of (December 2016 to February 2017), Hence we expect a identical move for the stock prices going further.
During the recent up move, the stock has also moved above its 50-Days SMA, which has acted as a strong resistance during the corrective decline. During the last four week’s consolidation the stock is seen taking support at or near the horizontal trendline (pink line) joining from Rs 4170 (December 2016), Rs 4160.65 (February 2017) and the recent two bottoms respectively.
Daily 14 period RSI is trading above the key upper levels of 60 also given a breakout of its own trendline. On its sustaining above 60 levels could mean strengthening of upside momentum in the stock price ahead. ADX plus DI has crossed above minus DI in last trading session, MACD has given a positive signal.
Moreover, the stock is currently placed near the major support area. It is likely to resolve higher from hereon and head towards Rs 4835-4850 (minimum projected targets of above said pattern), over the coming weeks and break of which prices may accelerate towards Rs 5100-5150, Hence advise to Buy at CMP and also adopt buy on dips strategy (price range Rs 4475-4500), maintaining a Stop just below levels of Rs 4090 on closing basis below which our bullish view will be voided.
The most important observation in the share price of Blue Dart Express is that the stock has formed a bullish “Double Bottom” as the lows of May 2017 and June 2017 are almost identical at around Rs 4165 signalling a reversal of the corrective trend prevailing since March 2017 at high of Rs 5300.
The stock has recently registered a resolute breakout above the short-term falling trend line resistance joining immediate highs of March 2017 (Rs 5290) and June 2017 (Rs 4500) currently placed at Rs 4325 levels which will act as major support for short term.
Current price action scenario is similar as of previous “Double bottom” formation during the period of (December 2016 to February 2017), Hence we expect a identical move for the stock prices going further.
During the recent up move, the stock has also moved above its 50-Days SMA, which has acted as a strong resistance during the corrective decline. During the last four week’s consolidation the stock is seen taking support at or near the horizontal trendline (pink line) joining from Rs 4170 (December 2016), Rs 4160.65 (February 2017) and the recent two bottoms respectively.
Daily 14 period RSI is trading above the key upper levels of 60 also given a breakout of its own trendline. On its sustaining above 60 levels could mean strengthening of upside momentum in the stock price ahead. ADX plus DI has crossed above minus DI in last trading session, MACD has given a positive signal.
Moreover, the stock is currently placed near the major support area. It is likely to resolve higher from hereon and head towards Rs 4835-4850 (minimum projected targets of above said pattern), over the coming weeks and break of which prices may accelerate towards Rs 5100-5150, Hence advise to Buy at CMP and also adopt buy on dips strategy (price range Rs 4475-4500), maintaining a Stop just below levels of Rs 4090 on closing basis below which our bullish view will be voided.
Trade closed: target reached