BSE - Big Move Ahead
Updated
BSE listed sometime in 2017. It made a high of 1000 odd in July 2017 and entered a downtrend with the rest of the market. This down move ended with the stock making a low of 266 in March 2020 following which the stock showed a trend reversal and started moving up.
However, as we can clearly see on the chart, the stock has made a powerful inverse H&S pattern over multiple months with the head at 266 (March 2020 low) and the neckline at 550 odd.
The first real break of this neckline happened in early December 2020 after which the stock immediately made a high of 658 and once again retraced and retested the neckline in late March 2021. The sideways/down phase finally ended this week with the stock breaking its recent high of 658 and closing at a new 30 month weekly high of 701.9 with massive volumes.
The Stock is now in a clear uptrend and is a very good medium to long term investment.
Near term resistances exist at 730 (weekly high and trendline resistance) and 775 ( strong resistance level on the chart in 2018)
Longer term targets are the inverse H&S target of (552-266)+552 = 838 which is fairly close to the 2017/2018 support level of 855.
The stock may go much higher if it manages to close above its ATH in the future. BSE must be bought with a medium to long term view and longs can be held with a WCB stop loss of 643 below which our bullish view is invalidated.
However, as we can clearly see on the chart, the stock has made a powerful inverse H&S pattern over multiple months with the head at 266 (March 2020 low) and the neckline at 550 odd.
The first real break of this neckline happened in early December 2020 after which the stock immediately made a high of 658 and once again retraced and retested the neckline in late March 2021. The sideways/down phase finally ended this week with the stock breaking its recent high of 658 and closing at a new 30 month weekly high of 701.9 with massive volumes.
The Stock is now in a clear uptrend and is a very good medium to long term investment.
Near term resistances exist at 730 (weekly high and trendline resistance) and 775 ( strong resistance level on the chart in 2018)
Longer term targets are the inverse H&S target of (552-266)+552 = 838 which is fairly close to the 2017/2018 support level of 855.
The stock may go much higher if it manages to close above its ATH in the future. BSE must be bought with a medium to long term view and longs can be held with a WCB stop loss of 643 below which our bullish view is invalidated.
Trade active
BSE exceeded our 865 target and made a high of 977 in the week ended 30th May. After that the stock entered a 4 week long consolidation before finally moving up again this Friday and closing at a fresh weekly closing high of 958.10.The stock has given a fresh weekly breakout with nice volumes and should continue its upmove. One can buy at CMP and add on declines to 900.
Resistance : 965 (all time weekly closing high from 2017), 977 ( recent high), 1027 (ATH)
Target : As discussed earlier, the stock can move up significantly once its all time weekly high (965) and all time high (1027.7) are taken out. Since the stock is near all time highs, we use Fibonacci Price Projection to arrive at a medium term target of 1495 (1.618 Fib)
Stop Loss: Trading longs can be held with a WCB stop loss of 930. For longer term investors, 856 is an ideal weekly stop loss.
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