Long bet in West Coast Paper Mills.
Updated
Financial highlights.
Over the past five years, the company has achieved an impressive compound annual growth rate (CAGR) of 33.9% in terms of its profit.
Company has a good return on capital employed (ROCE) of 61.5 %.
Stock has negligible debt to equity of 0.09. /list
Technicals.
Currently price is at somewhere between support and resistance level of the trend line, some position can be made either it gives a breakout, or it comes back to support.
My commentary
West Coast Paper Mills Ltd is one of the oldest and the largest producers of paper for printing, writing, and packaging in India.
Paper consumption expenditure is expected to double from $1.5 trillion in 2020 to $3 trillion by 2030.(Source: The Hindu).
We can long on this, if it falls as it is more likely to happen, more quantity can be added.
This is only for an educational purpose, Don't take it as a trade calls. I am not a Sebi registered
Over the past five years, the company has achieved an impressive compound annual growth rate (CAGR) of 33.9% in terms of its profit.
Company has a good return on capital employed (ROCE) of 61.5 %.
Stock has negligible debt to equity of 0.09. /list
Technicals.
Currently price is at somewhere between support and resistance level of the trend line, some position can be made either it gives a breakout, or it comes back to support.
My commentary
West Coast Paper Mills Ltd is one of the oldest and the largest producers of paper for printing, writing, and packaging in India.
Paper consumption expenditure is expected to double from $1.5 trillion in 2020 to $3 trillion by 2030.(Source: The Hindu).
We can long on this, if it falls as it is more likely to happen, more quantity can be added.
This is only for an educational purpose, Don't take it as a trade calls. I am not a Sebi registered
Trade active
Price has moved exactly the way as I was predicted. Price of the stock once again retraced to its robust support level. Since last year price been dancing in a ascending triangular pattern, goes up and comes back to its support. But Don't get into FOMO as of now because the candle it has firmed is fairly big, It might break its support.
It is crucial to wait for a strong confirmation. If the price manages to sustain above the line on a daily time frame, It would be an indication to proceed with trade and ensure high profit.
Note
Take a look at this beauty – it has surged up to 17% and is still rising, from our analysis point. today the stock retested its resistance. A new entry is only advisable once it breaks the trendline. Will keep updating furthermore.
Note
Today, the stock experienced a significant breakout and has been on a bullish trend for the past three weeks. Yesterday, it reached its first target and is now progressing towards its next target.For those looking to enter, it's wise to wait for the price to stabilize. A logical entry might be consider if it retraces to its breakout zone, because it has shown a significant run-up since 2-3 weeks. In second scenario if it maintains to sustain above the breakout zone and shows a relatively short wick at day ending then also entry can be made with some quantity, In that case stop loss can be placed under the breakout line.
Note
This stock has been showing massive gains since last month. Today, it has gained almost 6%. Currently, it is up by 30% from our entry point. I always emphasize identifying your winning stocks, from which you can go really long.Note
That stock is a perfect example of why I always emphasize not exiting early on your winning stocks. The stock is currently trading more than 50% higher than our entry point. A fundamentally strong stock plus a good entry point equals a higher probability of success.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.