Central Bank of India Looks Promising for 20% gain.Happy Independence day Guys. Today we are going to understand the technical of Central Bank of India in a very easy to understand language.
Here are some important pointers about CBI you should know.
1. Important line : As we see in a Larger timeframe there is a very crucial single support and resistance line. For 11 years that line acted as a very strong support where price has retested multiple times.
2. Role Change : Eventually, the price broke down, and this once-supportive line transformed into a resistance. Again the line had been tested by the price multiple times.
3. Bullish Wedge : Over the past 3 years, the stock formed a bullish wedge pattern on the chart.
4. Breaking the Wall: As shown on the chart, the price has broken through the strong resistance line for the first time and started continuing its wedge pattern.
5. 1-Day View : In a 1-day timeframe, it's visible that within the wedge pattern, the stock also formed an another ascending triangle pattern.
6. Triangular breakout : That triangle pattern recently given a breakout too and now it is a trading above that major resistance line.
7. Its financial : Now, discussing the finances, they look quite stable in terms of sales and profits, and NPAs are decreasing consistently. However, we cannot assume that the stock will skyrocket from this point and yield massive growth. Nevertheless, there is still potential for a 20% return, considering technical analysis.
8. Possible entry : Coming back the recent breakout, we might consider entering if the stock can maintain its triangle breakout point. A suitable stop-loss could be set at 29.50, and our initial target could be 38.30.
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Please note I am not SEBI registered. Do your own research before investing.
