Sumitomo Chem long at 380
1. Market is in what stage - Identified by what kind of highs and lows that are being formed + movement of price w.r.t 21, 50 and 200 EMA
Price topped out in July 2021, then distribution till mid Sept, Decline till Nov end and Accumulation from Dec. Currently price broke out over 50 EMA and pulled back till 50 EMA
Also Price higher than 50 EMA (daily), higher than 21 EMA (Daily), higher than 200 EMA (Daily) signalling trend change
2. Is there any trend reversal in play?
1. Multiple divergence confirmations on MACD , RSI and MFI? Yes
2. At important support or resistance - horizontal - Yes bounce from 350 zone
3. At important confluence of EMAs + price + support - Yes - Daily 200 and Weekly 50
3. How are the candlesticks behaving and what is the volume doing
Candlesticks - HH,HL plus volume shows buying. Weekly candle also is big green
4. Is there any trend continuation in play?
Currently in advancing.... Good candidate for up trend to continue
5. Is there any pullback or breakout in play with volume confirmation from a strong horizontal level (support or resistance)
Yes breakout of 50 EMA (daily) at 580 and then pullback to this level.... ideally upward trend should continue
6. Fundamental factors in play
1. EPS growing quarterly and yearly due to revenue growth and OPM growth... PE is lowest compared to EPS growth since 2020
2. Are institutional investors/promotors increasing their stake - Institutional, domestic and public have increased stake while promoters have diluted but they still hold 75%
Price topped out in July 2021, then distribution till mid Sept, Decline till Nov end and Accumulation from Dec. Currently price broke out over 50 EMA and pulled back till 50 EMA
Also Price higher than 50 EMA (daily), higher than 21 EMA (Daily), higher than 200 EMA (Daily) signalling trend change
2. Is there any trend reversal in play?
1. Multiple divergence confirmations on MACD , RSI and MFI? Yes
2. At important support or resistance - horizontal - Yes bounce from 350 zone
3. At important confluence of EMAs + price + support - Yes - Daily 200 and Weekly 50
3. How are the candlesticks behaving and what is the volume doing
Candlesticks - HH,HL plus volume shows buying. Weekly candle also is big green
4. Is there any trend continuation in play?
Currently in advancing.... Good candidate for up trend to continue
5. Is there any pullback or breakout in play with volume confirmation from a strong horizontal level (support or resistance)
Yes breakout of 50 EMA (daily) at 580 and then pullback to this level.... ideally upward trend should continue
6. Fundamental factors in play
1. EPS growing quarterly and yearly due to revenue growth and OPM growth... PE is lowest compared to EPS growth since 2020
2. Are institutional investors/promotors increasing their stake - Institutional, domestic and public have increased stake while promoters have diluted but they still hold 75%
Comment:
Added more 55 shares at 387
Comment:
Q3 2021 results encouraging, revenue and OPM growth from Q3 2020
Comment:
Closed position at 424... did not hold up til 460 run up.. but that was a massive fakeout also... position closed in 10% profit