CautiousChartist

GMDC - Very Attractive Valuation

NSE:GMDCLTD   GUJARAT MINERAL DE
CMP- 42.5

Ascending Triangle formation
Above the resistance of 43.5 can touch 46.5
RSI is favorable at 58

Today it gave a breakout of 43.5 with volume but even if it doesn't close above 43.5 today , it may do so in days to come.

Keep a close watch.
Comment: The idea here is to enter at a price at minimal risk and high reward since the RSI suggests that the positivity > negativity.

If the price falls below 39.65 due to a weak Nifty or any other reason then the pattern fails which is exactly where a strict Stop loss is to be maintained.
Comment: Today Nifty showed very good strength especially after breaking above the rising wedge. My Nifty chart is available for reference. So with this positive indication coupled with GMDC also showing strength today, lets expect it to cross 45.5 - 46.5 next week which has been a strong resistance zone.
Comment: Tip: Always keep a stop loss no matter how good the markets are. You can ignore a target but never ignore a stop loss based on your risk appetite because that is the only best friend in the market.
Comment: On the 15minute chart I see a sudden accumulation. Expecting a big move late afternoon or tomorrow.
Comment: The price broke out of the lower side of the triangle. However, keep a close watch and it is advise able to keep a stop loss at 40.9
Comment: Bounce -support - bounce - support. Lets see Mondays bounce back or fall.
Comment: Enter after it closes above 46.5 to be safe but a little risky investors can take it above a close of 43.3 Stop loss 40.9
Trade closed: stop reached
Comment: A revised chart of GMDC has been posted.

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