Jamna Auto was in a consolidation of 3.5 months. This consolidation was preceded by an impressive rally. The price gave an upward breakout to the consolidation on a weekly chart and closed at Rs.77.45 on Friday 21st May 2021. The breakout has huge volume support. I anticipate the price target of Rs.97 and the time frame of around 3 months to achieve the price target. I suggest the stop loss at Rs.71. The risk-reward ratio is little more than 1:3. The upside potential is 24% at the CMP. The stop loss level should be maintained at Rs.71 for the first four weekly candles after the breakout weekly candle. Thereafter, the profit booking/ exit decision should be taken on achievement of price target or downward crossover of 26 EMA by 5 EMA whichever happens earlier.
NOTE: This idea is an attempt to predict the future price movement. Investment decision based on this idea, if any, shall be at the sole risk of the investor.
NOTE: This idea is an attempt to predict the future price movement. Investment decision based on this idea, if any, shall be at the sole risk of the investor.