Zee Entertainment is currently trading at 206 as of 8/7/2023.
The stock has been in a downtrend for over 2 years, continuously making lower lows (LL) and lower highs (LH). However, for the first time, the stock has started trading above its previous LH, indicating that sellers may have exhausted their selling pressure.
Regardless of the news surrounding the Sony Zee merger, the chart suggests that there could be a significant upside potential from this point onwards, with a stop loss (SL) set at the base of the weekly candle, which is at 176.
Here are the observed patterns:
On the daily timeframe, the candle on 4th July formed a doji candle, which closed below the 20-day exponential moving average (EMA) with falling volume. This is typically considered a sign of a reversal.
The stock had been respecting a downtrend trendline. However, this week's price closed above the trendline with good volumes, indicating a potential breakout.
The targets for this stock are not specified, but they are expected to be on the upside. It is important to maintain a strict SL at 176 to manage risk effectively.