The power sector has been making great news. It is hitting its 10 years high. This rally is partially due to the Covid pandemic where domestic power consumption has seen a good demand. Following, the rally in Powers Sector stocks, JP Power Ventures has been on a good run.
In early May, after a period of brief consolidation, it made a breakout as a Bullish Marubozu candle. There was a corresponding increase in volume as well. The resistance was at 4.05 but the support was increasing, it was making higher lows. The support increased from 3 to 4.05, and the resistance was at 4.05, forming an ascending triangle pattern effectively. The volume during this period was higher than the average volume during the last 6 months.
JPPOWER . For the next 2 weeks, the volume was increasing with the stock hitting the upper circuit making a rally till 6.50. The height of the triangle is 1.05. Thus, the profit target for a risk-averse swing trader would be the length of the candle, at 6.10 (4.05 + 1.05). After hitting 6.5, it dropped 4.7% by a bear candle on 23rd June. Price might consolidate in this range. If bought during the rally, its good to book profits now.
In early May, after a period of brief consolidation, it made a breakout as a Bullish Marubozu candle. There was a corresponding increase in volume as well. The resistance was at 4.05 but the support was increasing, it was making higher lows. The support increased from 3 to 4.05, and the resistance was at 4.05, forming an ascending triangle pattern effectively. The volume during this period was higher than the average volume during the last 6 months.
JPPOWER . For the next 2 weeks, the volume was increasing with the stock hitting the upper circuit making a rally till 6.50. The height of the triangle is 1.05. Thus, the profit target for a risk-averse swing trader would be the length of the candle, at 6.10 (4.05 + 1.05). After hitting 6.5, it dropped 4.7% by a bear candle on 23rd June. Price might consolidate in this range. If bought during the rally, its good to book profits now.