Chart of the week. India Cements. 29/1/22
India Cements had given breakout 3 weeks before. It had a major resistance around 216 and stock broke with high volume and price (increased 25% in a week). I was waiting for the stock to retest its previous resistance which is 216 and this week it has tested the resistance. This is an ideal time to enter in the stock with great RR ratio.
Technically, over the period of 4 years it has created a beautiful rounding bottom pattern. This is a father of all the technical patterns. On a longer time frame, 10 years plus, we can also observe another rounding bottom as this stock is been in consolidation for over a decade. Therefore this is a breakout of a decade. These breakouts are not ordinary and one should not miss this opportunity. Accumulation zone for this stock is 216 to 240. 250 is a strong resistance, however, the next technical target is 330.
CMP - 223.7
Target - 250, 330 weekly.
SL - 180 weekly
View - medium to long term.
Technically, over the period of 4 years it has created a beautiful rounding bottom pattern. This is a father of all the technical patterns. On a longer time frame, 10 years plus, we can also observe another rounding bottom as this stock is been in consolidation for over a decade. Therefore this is a breakout of a decade. These breakouts are not ordinary and one should not miss this opportunity. Accumulation zone for this stock is 216 to 240. 250 is a strong resistance, however, the next technical target is 330.
CMP - 223.7
Target - 250, 330 weekly.
SL - 180 weekly
View - medium to long term.
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