Suven Life Sciences
Investment Horizon - 6 months plus
CMP 239
Top Down Approach - a) Monthly Chart b) Weekly Chart c) Daily chart.
a) Higher Time frame chart - Monthly (Ascertaining the big picture)
1) Above 30 period EMA.
2) Cup formation in progress and the first HH is seen suggesting early stages of the uptrend has started.
3) Breakout observed past the downward sloping resistance line with good volumes; RS is sloping upwards (however, has not crossed 30 ema; very closely placed; so ideally should be a watchlist until this happens); MACD has emerged positive with rising histogram. (RS is not there in tradingview. It is Relative Strength with respect to Main Index which is nifty. Can be found in few other softwares like Amibroker).
3) Hence bias should be only LONG in this stock. So next step is to ascertain the right time to enter.
b) Middle Time frame chart - Weekly (Ascertaining the current sentiments and the right time to enter)
1) Price has crossed the horizontal resistance zone more recently with good volumes.
2) RS crosses 30 week ema.
3) MACD histogram rising.
4) Hence recent sentiments are positive which could possibly fuel the momentum to the stock.
c) Lower Time frame chart - Daily (Entry zone).
1) Stoch and MACD favours entry at cmp . (For a medium to long term holding, entry can be done in the middle time frame chart too.).
Stop at 180 (a tad below 30 week ema in weekly chart).
Target 340
Investment Horizon - 6 months plus
CMP 239
Top Down Approach - a) Monthly Chart b) Weekly Chart c) Daily chart.
a) Higher Time frame chart - Monthly (Ascertaining the big picture)
1) Above 30 period EMA.
2) Cup formation in progress and the first HH is seen suggesting early stages of the uptrend has started.
3) Breakout observed past the downward sloping resistance line with good volumes; RS is sloping upwards (however, has not crossed 30 ema; very closely placed; so ideally should be a watchlist until this happens); MACD has emerged positive with rising histogram. (RS is not there in tradingview. It is Relative Strength with respect to Main Index which is nifty. Can be found in few other softwares like Amibroker).
3) Hence bias should be only LONG in this stock. So next step is to ascertain the right time to enter.
b) Middle Time frame chart - Weekly (Ascertaining the current sentiments and the right time to enter)
1) Price has crossed the horizontal resistance zone more recently with good volumes.
2) RS crosses 30 week ema.
3) MACD histogram rising.
4) Hence recent sentiments are positive which could possibly fuel the momentum to the stock.
c) Lower Time frame chart - Daily (Entry zone).
1) Stoch and MACD favours entry at cmp . (For a medium to long term holding, entry can be done in the middle time frame chart too.).
Stop at 180 (a tad below 30 week ema in weekly chart).
Target 340
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