UTIAMC: Multi-Year Breakout: Weekly Timeframe: Week ending 04-Oc

Oct 4

UTIAMC: Multi-Year Breakout: Weekly Timeframe: Week ending 04-Oct

• Stock comfortably broke the high (1216.2) it made in 06-Sep-21 and closed above in the week starting 02-Sep-24. A multi-year breakout on a weekly time frame
  
• Over the same window company's PE ratio has decreased from 27.2 on (06-Sep-21) to 19.7 on (04-Oct-24) indicating a more attractive valuation given the company's earnings
  
• RSI in the week of 02-Sep-24 (64.08) is above 60.
  
• Breakout in 02-Sep-24 happened with above average trade volume (9 SMA)
  
• Drawdown = 621.2/-
  
• Target = Breakout level + Drawdown during consolidation phase = 1216.2 + 621.2 ~ 1830
  
• SuperTrend = 973.73 (06-Sep-24)
  
• Missed identifying the stock at initial breakout. However the stock retested and closed at the breakout level in the week of 30-Sep-24.
  
• Will initiate trade if the next week is bullish and closes above the breakout level
  
• ATR = 78.69 (30-Sep-24)
  
• SuperTrend = 1049.96 (30-Sep-24)
  
• RSI in the week of 30-Sep-24 (66.22) is also above 60.
  
• Stop Loss = 1 ATR below previous swing low = 1198.6 - 78.69 ~ 1110
  

Oct 12

Note

Week of 07-Oct

• This week also closed with a red candle.
  
• Will wait for a bullish weekly candle to initiate trade.
  
• Trade setup: Plan to initiate trade if the price goes above the highs made in the week of 02-Sep'24. Hopefully that would also result in a bullish weekly candle closure
  

Oct 12

Note

Ignore the previous update on the Week of 07-Oct above

Week of 14-Oct

• The previous week also closed with a red candle.
  
• Will wait for a bullish weekly candle to initiate trade.
  
• Trade setup: Plan to initiate trade in the current week if the price makes a new high. Previous high was made in the week of 16-Sep'24 i.e. 1341. Will trigger a buy above 1341. Hopefully that would also result in a bullish weekly candle closure.
  

Oct 16

Trade active

Bought @ 1283.40