Neat & Clean Rectangle Pattern Breakout seen in Top Cement StockHello Everyone, i hope you all will be doing good in your life and your trading as well. Today i have brought another stock which has given Near and Clean Rectangle pattern breakout. Stock name is UltraTech Cement and it is engaged in the manufacturing and sale of Cement and Cement related product primarily across globe.
Okay guy's let's learn something very important about this pattern:
Q:- What is Rectangle Pattern and How to Use Rectangle Chart Patterns to Trade Breakouts?
Rahul:-
A rectangle is a chart pattern formed when the price is bounded by parallel support and resistance levels.
A rectangle exhibits a period of consolidation or indecision between buyers and sellers as they take turns throwing punches but neither has dominated.
The price will “test” the support and resistance levels several times before eventually breaking out.
From there, the price could trend in the direction of the breakout, whether it is to the upside or downside.
we can clearly see Above in Ultratech chart that the pair was bounded by two key price levels which are parallel to one another.
So, Traders, i hope you Guy's have learned today how to Trade Rectangle Pattern, but Mates We just have to wait until one of these levels breaks and go along for the ride!
Remember , when you spot a rectangle: THINK OUTSIDE THE BOX! That's it.
Market Leadership
The company is the 3rd largest cement company in the world, excluding China. It is also the largest cement manufacturer in India with a 22% share of the grey cement capacity.
Let's discuss some fundamentals
- D/E is 0.17
- Interest Coverage ratio 10.73 is higher than last year's Interest Coverage Ratio 10.01
- D/E 0.17 has reduced as compared to last year's D/E 0.18
- ROCE is 15.42%
- ROCE 15.42% has increased as compared to last year's ROCE 13.2%
- ROE is 12.25%
- ROE 15.42% has increased as compared to last year's ROE 13.2%
- ROCE 15.42% is higher than 5 years ROCE average 14.02%
- Operating Profit Margin (EBITDA Margin) is 18.29%
- Operating Profit Margin (EBITDA Margin) 18.29% has improved as compared to last year's OPM 16.79%
- NPM is 9.88%
- Net Profit Margin (PAT Margin) 9.88% has improved as compared to last year's NPM 8.01%
- Company has a negative Cash Conversion Days of -188.47
- Annual Sales has grown by 12.13%
- Annual Profit has grown over by 38.33%
- 3 Years Sales CAGR is 18.67%
- Retail/Public have reduced their stakes by 0.32% in the latest quarter (14.4% to 14.08%)
- Promoters + FIIs + DIIs hold 92.01% in the company
Disclaimer:- Please always do your own analysis or consult with your financial advisor before taking any kind of trades.
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