Ram_HumbleIndianTrader

PTC India: Long break out

Long
NSE:PTC   PTC INDIA LTD
Price action pattern: Break-out and sustained from a downward trending line resistance line (From 43 to 35) at 35 with almost flat support line at 32.5. Further after break-out, tested the support turned earlier resistance line and stayed above with considerable volume .

Fundamentals: Results of Q4 2020 and FY 2019-20 is expected on 08 June 2020 (Monday). With the overall trend of the market expected to be upwards and the results at the back of some good deals for PTC , price is expected to be favourable towards bulls.

Indicators:
1. MACD: Upward crossover over signal line observed at the previous low of 32.5 (near support)
2. RSI well below overbought zone showing short term strength
3. DMI showing a ADX strength of close to 50 whilst ADX+ sustains above ADX-
4. MA 20 cutting MA 50 from below

Possible trade:
Buy: 37
Target 1: 39
Target 2: 42.5
Stop loss: 34.5 (Considering an ATR of 0.76)