If you observe chart you can see a falling wedge pattern in ITC after an Uptrend. Generally in such situation there is a major chance for trend continuation after Falling wedge pattern successful breakout.
Here I have marked A and B points that are nothing but the two points on the trend lines.Upper trend line is Resistance and Lower trend line is Support.
So If ITC successfully breakout, how to calculate the target? Target = B - A = 239.65 - 204.35 = 35.30 Roughly you can expect 30 to 35 rupees target. (If trend continues we can get more.)
Where to take entry? If stock shows breakout , wait for a confirmation candle. You can also use MACD , RSI indicators for confirmation.
If in worst case, stock breaks the support, it can fall further.
Consider this stock for a long term as this stock is commonly known for a slow moving stock. Stock is fundamentally strong. Stock has a great dividend-bonus history. The Company operates through different segments FMCG, Hotels, Paperboards, Paper and Packaging and Agri Business. We can expect some positive news for the ITC in current market situation because the Deliverable quantity for ITC stock is increasing day by day. So in future we can surely expect an Up trend.
Disclaimer : This is my personal analysis for educational purpose. I am not sebi registered. Do your analysis before taking a position. I am not responsible for any profit or loss.
Sir please analyse HUL and tell me if a target of 2400 is possible in a month it is consolidating since 1 month
AmeyKajarekar
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@radhewankhade, Its a very good stock. Best stock in FMCG business, but from last year it is consolidated. Stock price is currently at its nearest support that is 2324.If it breaks then new support is near 2300. Lets hope for the best. If you have this in your portfolio hold it for long term and buy on dips. Once the consolidation is over stock will be at new high. May I know if you are holding this stock, what is the average price?
radhewankhade
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@AmeyKajarekar Yes sir I have 300@2348, I buyed it for a short term but I guess it's a long term now
AmeyKajarekar
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@radhewankhade Hold this stock. Stock is not bad. Just your buying time is. Stock is consolidated. Buy on dips if possible near the support line. and Hold tight. Once it starts its rally, it will be at new high.