BullishLine

Big opportunity in Expleo Solutions.

Long
NSE:EXPLEOSOL   EXPLEO SOLUTIONS
Hello Guys I hope you are doing well. Here I bring the complete analysis of EXPLEO SOLUTIONS.

Please Go through all analysis which I have presented to you in a very easy to understand language.

Fundamental Analysis: Expleo Solutions

1. About the Company:
>>Fast-growing software company, especially with banks.
>>Small-cap but growing steadily.

2. Financial Strength:
>>Almost no debt, a good sign.
>>Profits increasing by around 33% annually over 5 years.

3. Profitability:
>>Good at making money, with an average of 26.8% profit on what it owns.

4. Ownership Changes:
>>Founders have increased their ownership by about 14.9% recently.
Foreign investors are also buying more shares.

5. Future Expectations:
>>Predicted to have a strong quarter ahead.
>>In summary, Expleo Solutions is financially healthy, profitable, and with increasing interest from its owners and investors, it's looking forward to a positive upcoming quarter.

Technical Analysis:

1. Current Trend and Patterns:
>>In the Daily timeframe, the stock is moving sideways.
>>Initially, it formed a descending triangle pattern and broke out, but later retraced and created a "double bottom" indicating W shape recovery.
>>We can also find an another pattern called Ascending Parallel channel pattern, connecting to the previous triangle pattern.
>>Presently, the stock appears to be consolidating within this parallel channel pattern.

2. Price Reaction and Support:
>>After Q1 earnings, the stock experienced a sharp 25% decline, reaching its support level.
>>This significant drop could be due to resistance acting as a barrier.
>>Despite the fall, sales and profit ratios indicate stability.

3. Current Situation and Momentum:
>>The stock is currently available at a discounted level.
>>Over the past 4 days, it has shown consistent upward movement.
>>Positive RSI levels suggest favorable momentum.

4. Consideration for Entry:
>>Considering the recent positive movement and RSI indications, entering the stock could be considered.
>>Place a logical stop loss at 10% to manage risk.
>>The potential target is a 25% profit.

5. Buying at Support vs. Breakout:
>>Purchasing at the support level is safer compared to buying at breakout points.
>>Although it might take longer to see gains, it reduces the risk associated with breakout trading.

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