Early move prediction in a small cap company (Eclerx Services).Eclerx services after a consolidation of 12 months has given a break out and is showing a trend reversal signal. The stock after the break out has given a 10%+ up move and in this month formed a gravestone doji from the resistance zone forming double top pattern.
Currently, the stock is trading around 1625 levels, testing the 38.2% fib levels and the support zone around 1550 levels coinside with 50% fib levels.
The volume incidator is also showing some positive sentiment. Up move are in high volumes and the bearish days are showing low volumes.
The stock is holding on the higher levels and has consolidated for 4 weeks forming a flag and pole pattern.
A retest and another bull leg is how the market move.
If the stock come to test the 50% levels, it can be bought and accumulated even on the lower levels of 1456 (200 DMA).
Entry levels :- 1550, 1456
Targets :- 1750-1800, 1950
Time frame :- 3-4 months.
Market are trading at ATH. The stocks will follow the market.
This is a small cap company and looks fundamental good. The stock can be considered for long term investing too.
Wait for price action near the levels before making position in the stock.
