As seen PFC has broken out of Cup and Handle pattern with good volumes in the daily chart. It is bullish in the larger time frame as well. RSI has also given a breakout and now is above 60, indicating that the stock has gained good momentum. Expected Levels- 140, 155.
If someone can hold it for a few months then target would be the height of the cup i.e 185- 190.
Trade closed: stop reached
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Comments
ArjunTurakhia
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Hi! Still looking at the same targets? 155? Hasnt been able to breach 135. Looks a hurdle to me
aks85
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@LearnerTA, Hi. You have a good observation there. Yes, 135 is acting as a hurdle as can also be seen previously where this zone was acting as a resistance. This is the reason stocks that are at all time high and forming this pattern are the best to trade/invest in, nonetheless I took a trade in it as it had good volumes and this sector particularly was doing well when all other sectors were looking weak. I would wait as the analysis were done on a daily chart and sometimes it takes longer than we expect and that's the way the market is. It will always tests our patience. But in case we find a better stock we should be flexible enough to exit this one and put our money where we have more conviction. Thanks.
aks85
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@LearnerTA, It also is forming a double top, which is a bearish reversal pattern. In case, it closes below 127.5, we should exit our longs.