Targets : 1180-1225-1300 Buy range : 1090-1100 Stoploss : 1015 Duration : 4-5 weeks
Outlook :
After a strong up move in the last 6-7 months of 2017 from | 667 to | 1218, the share price of Centurytex entered a secondary corrective phase during May 2017 to work off the extremely overbought conditions developed after the strong rally.
The price wise correction halted precisely at the major support area of | 1038-1042 being the confluence of following technical observation:
The Horizontal trend line support joining tops of October 2016 (1038.70 ) and March 2017 (1042).
The upward sloping trendline gaining multiple supports during upward journey for the stock.
Presently, stock has staged an upside breakout from a “Double Bottom “ with rising volumes, giving a confirmed close above 1096 ( mid-point ) of the said pattern..
Bullish engulfing Candlestick pattern was formed by the stock as on 15/06/2017 and Three outside up Candlestick pattern was formed as on last trading session.
Among oscillators, the daily 14 period’s RSI is currently placed above centre line, As Per ADX, stock is in strong trend with readings of 36, Bullish MACD line is crossed over signal line today.
Keeping in mind the above technical evidences we recommend a Buy as per levels mentioned above for this particular stock.
Outlook :
After a strong up move in the last 6-7 months of 2017 from | 667 to | 1218, the share price of Centurytex entered a secondary corrective phase during May 2017 to work off the extremely overbought conditions developed after the strong rally.
The price wise correction halted precisely at the major support area of | 1038-1042 being the confluence of following technical observation:
The Horizontal trend line support joining tops of October 2016 (1038.70 ) and March 2017 (1042).
The upward sloping trendline gaining multiple supports during upward journey for the stock.
Presently, stock has staged an upside breakout from a “Double Bottom “ with rising volumes, giving a confirmed close above 1096 ( mid-point ) of the said pattern..
Bullish engulfing Candlestick pattern was formed by the stock as on 15/06/2017 and Three outside up Candlestick pattern was formed as on last trading session.
Among oscillators, the daily 14 period’s RSI is currently placed above centre line, As Per ADX, stock is in strong trend with readings of 36, Bullish MACD line is crossed over signal line today.
Keeping in mind the above technical evidences we recommend a Buy as per levels mentioned above for this particular stock.