Channels
An investment idea in DIVISLAB on NSE (INDIA)This is weekly chart of DIVISLAB on NSE with CMP @ 1477.80. It seems to be an excellent scrip for long term investment based on following observations:
1. Price was trading in a channel as shown on the chart since June 2011 unless it broke down in Dec 2016. Price once again has entered the channel after deep corrections.
2. Price has broken previous high made in Sep 2016.
3. Support zone has been indicated on the chart based on price action. Price after testing the lower end of support zone, has formed bullish kicker in the last week with substantial rise in volume.
4. MACD indicates bullish view.
Price seems to be all set to go past 1800 (upper fibre of rising channel). Hence, it looks good from investment perspective with initial stop below 1324 (below bullish candle of last week on closing basis) and ride the trend.
Happy investing...
West Coast Paper Mills Ltd! Price Channel ChartTechnical : Price Channel Target @ 380
Chart Pattern : “Bullish Price Channel”
Main Trend Line : At 8 Dec 2017, 18 Dec 2017, reaction lows formed the beginning of the main trend line .
Subsequent lows in 03 January 2018, and 10 January 2018 confirmed the main trend line .
Channel Line : Once the main trend line was in place, the channel line beginning from the 11 Dec 2017 high was drawn.
A visual assessment reveals that these trend lines look parallel. More precise analysts may want to test the slope of each line, but a visual inspection is usually enough to ensure the “essence” of the pattern.
Bullish Price Channel : Subsequent touches along the main trend line offered good buying opportunities in mid- 18 Dec 2017, late May and mid-August.
The stock did not reach channel line resistance until 22 Dec 2017 and 26 Dec 2017 (red arrow) and this marked a significant reaction high.
If channel line resistance break with an acceleration above marked (blue arrow). Then Some analysts might consider the stock overextended after this move
Strong Fundamentals :
(Fundamental Medium Term Target 800)
(Fundamental Long Term Target 1000)
1.Total (Mkt. Cap) : 2170cr
2.Debt : 0.59cr
3. Stock PE : 16.00
4.ROE :12.64%
Amara Raja Batteries... Battery up and running...!!!Amara Raja batteries
CMP 753
The stock recommended at 690 is very near its target of 760
Link to Previous update
We cannot time the market but when time comes one surely can make the most of it...
Consider booking profits...
Enjoy & happy week end...!!!
SBI: Whats the story...SBI
CMP 256
Observations
- trading in ascending channel since Feb 2016
- currently at lower end of channel
-trading below 50 day EMA
- trading below 200 day EMA
View going forward
Scenario 1
- stock is at major trendline support & if the stock holds on to current level then
- the stock may see a bounce towards either 50 day EMA currently around 278 or max towards mid red line of channel around 295-305 levels
- and then we may see a bigger fall
Scenario 2
- The stock breaks past the channel support
- takes support around green line (around 244)
- on bounce finds resistance at 200 day EMA
- & falls again
Given the chart setup
- likely short term target 269-278
- & if we seen rejection on any bounce then the target over medium term looks likely to be around 220-196
Take care & safe trading...!!!