Swing Trading Idea for NSE:SAH

Gartley Harmonic Pattern Suggests a Potential Reversal

On the daily timeframe, NSE:SAH has formed a Gartley Harmonic Pattern, indicating a possible bullish swing setup. Here’s the detailed breakdown:

Pattern Details:

Entry Zone: Around ₹89.
Stop Loss (SL): ₹79 (below the pattern's invalidation zone).
Target Levels:
Target 1: ₹97
Target 2: ₹106
Target 3: ₹120
Relative Strength Indicator Signals:

123-Period RSI: Recently crossed above 0, suggesting a potential reversal after a prolonged downtrend.
55-Period RSI: About to cross above 0, which could strengthen bullish momentum.
Key Support Zone:

Price is holding firmly above the critical support level at ₹85.47, further confirming a strong base for the upward move.


Company Overview:
Incorporated in 1992, Sah Polymers Ltd specializes in the manufacturing and marketing of Flexible Intermediate Bulk Containers (FIBC) and other flexible packaging products. Recognized as a Star Export House by the Government of India, the company has a market capitalization of approximately ₹224 crore and a current stock price around ₹87. However, it's noteworthy that the company has reported a low return on equity of 4.85% over the past three years, and debtor days have increased from 60.1 to 74.8 days, indicating potential challenges in receivables management.
SCREENER

Trade Plan:
Entering near ₹89 with a strict stop loss at ₹79 and partial profit booking at ₹97, ₹106, and ₹120 seems to be the idea.

Disclaimer:
This analysis is for informational and educational purposes only, purely based on Harmonic Patterns and does not constitute any types of investment advice. Trading stocks and other financial instruments involves 100% risk and can result in financial loss. Past performance is not indicative of future results. Always conduct your own research or consult with a professional financial advisor before making any investment decisions.