SKMEGGPROD - Bullish Pattern and Strong Support Levels

Mar 6, 2023

Recommendation: Enter now at the lower support lines and exit at the upper resistance line.

Why I am personally bullish on this stock ?
1. Bullish Price Channel
2. Strong Fundamentals
a) Quarterly Sales increased from 77 crores (Dec 2021) to 182 crores (Dec 2022).
b) Quarterly Operating Profit increased from 4 crores (Dec 2021) to 46 crores (Dec 2022).
c) Pledged promoter holdings is insignificant.
d) In last 6 months, promoter holding in the company has almost stayed constant.


Supplemental Reading (Optional)
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a) What is a Channel Chart Pattern ?

1. A trading channel is drawn using parallel lines that follow the price floor (support) and price ceiling (resistance).
2. When the direction of a channel is upward then it is considered the bullish channel whereas when the direction of the channel is in the downward direction then it is called a
bearish channel.

b) How to trade in Parallel Channel?

1. Sell stocks at the upper resistance line.
2. Hold stocks within the parallel trend lines.
3. Buy stocks at the lower support lines.

Disclosure:
I am not a SEBI registered advisor. The information provided here is for education purposes only. I will not be responsible for any of your profit/loss with this channel suggestions. Consult your financial advisor before taking any decisions. This is neither an advice nor an endorsement.

Mar 8, 2023

Note

Wait, as It may hit the price floor support again.

Mar 14, 2023

Trade active

Broke the Parallel Channel, showing a bearish trend showing poor market sentiment even though the fundamentals and profits are good.

Mar 24, 2023

Trade active

Strong Support and buying Pressure at Price 127.80 /- Lets wait and see

Apr 14, 2023

Trade closed manually

Trading Closed: Unable to break the Lower line of the parallel channel which was previously acting as Strong Support and now during pull back this line is acting as strong resistance. It may try again and break the channel only if there is a strong volume backed by some economic or revenue sentiment. Closing the trade for now.