Weekly chart
Cup formation based breakout out with huge volumes.
Target 880 + 0.5 (27) = 1035.
Stop 800.
Aggressive investors can buy 50% now and 50% on any retracement.
Conservative investors can look for a possible retracement towards 900 levels. However chances of missing out prevail.
Weekly chart
1) Broad Rounding Botoom formation (RdB) completed post which breakout with good volumes observed.
2) Within RdB, H&S pattern with neckline breakout observed.
3) Conservative target of 1075 - (1075-625)*0.5 = 1300 plus
4) Stop at 1000.
Technical details:
1) Stock has last week broken out of an one and half year downward channel with huge volumes and reached a high of around Rs 420.
2) In that process stock's 30 day ema has crossed 200 day ema.
3) CMP is around 385.
Fundamental details:
Profitability:
1) Current RoE at 47%; Average 3 year RoE at 46.5%; Average 5 year RoE at 35%.
2) QoQ proit...
Round bottom / Cup formation in progress.
HH and HL formation suggests upward momentum.
Broad RH and RS pattern adds more conviction on the long side.
Stop 525.
Target 650 plus.
step by step , just looking to crawl back slowly and steadily to next zone. Current news on logistics getting Infra player status will help it go higher. see 115- 120 level in next 12-18 months
Trading opportunity:
JSW STEEL
CMP 277.15
Target : 297 plus
Stop : 265 (below the low of previous candle)
Rationale :
W pattern breakout.
Target : Length of the pole of W X 0.5 + breakout level = 297 plus.
Trading Strategy:
1) Aggressive traders : Jan Futures - Lot size 3000; Profit potential around rs 20X3000 = Rs 60,000 per lot. Risk Rs 12 X 3000 = Rs 36,000...
