Recently after forming a Bearish Bat, Share price fell by almost 20% from 303 to 235 The RSI of the company also reached 30 level - Key level for bounce back
After taking support at its previous low that is the W pattern low 1 at 236- 232 zone ( purple rectangle in chart ), The share has shown a healthy bounce led by the Bullish Kicker and is trading at 254 now.
If it follows the trend of bouncing from EMA 100, one can look for targets at previous Highs of 300 and 317 In a rising market, EMA is a good tool to catch the Dip if price shows a healthy initial bounce. Stop loss at 230 that is previous low will warrant a reward risk ratio of 5:2
The share fundamentals are strong and has a PEG Ratio of 1.8. PEG ratio above 1 is generally considered good. The EPS of the company has been on a rising trend and can be a good long term pick as well.
Thanks for reading! I am pretty much self taught in Harmonics, so in case I missed something, let me know in the comments.
Note : This is purely for Educational purposes and not to be considered as an Investment Advice.
Comment
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As rightly pointed by SKLDLPD2010, PEG Ratio below 1 is generally considered fairly or undervalued and hence, right time to enter the stock. PEG Ratio of IEX is 1.8 currently, it is not a matter of great concern right now since the government proposes to introduce MBED reforms soon which will greatly increase the whole market size and hence for the same or less share, IEX will have a high Topline boost.
very good analysis mr aayush..i was having this before bonus and after bonus there was a considerable profit after bonus..still iwas reluctant to sell it at 281 iwas expecting it go up to 340...you confirm it ..let us wht market has got in store...your analysis based on area of confluence still add strength to what you have seen in the chart rather than assuming...very very good keep it up...share your valuable thoughts...thank you...
Aayush_Rungta
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Glad I could add some value with my analysis. Your feedback means a lot to me, Lathashakthi Ma'am.
rakesh4online
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@Lathashakthi, but all i see is a bearish flag. i too buy at 240, but held, sold at 240, seeing this i am thinking of accumulating at 210 in falling market and volatility. Please say points to make me buying at current level. Currently I feel it break down the flag pattern and retested and falling. Please advise. I am naïve
suheldeaf123
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good
Vipulkr08
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Good one, I am also following similar charts & quite efficient
skldlpd2010
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Small clarification - don't u think PEG ratio below 1 is good.🙏🏿
Aayush_Rungta
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@skldlpd2010, Right. I have updated it. Thanks for pointing out. Really appreciate it.