Breakout Rally in Skipper LtdNSE:SKIPPER is expected to break past its resistance and may rally up to 20% in the near future.
Technical Reason - NSE:SKIPPER had been on a downtrend in the first half of December before resuming its upward movement from 22nd December. NSE:SKIPPER has been on an uptrend ever since breaking out from its downtrend channel. NSE:SKIPPER has always encountered resistance at 260, however this time, a big green Marbozu has formed and closed above its resistance which shows that bulls plan to take this stock to higher levels. The MACD indicator also indicates that bulls are in control and it is the right time to go long on $NSE:SKIPPER.
Fundamental Reason - NSE:SKIPPER is trading at a PE of 39, which seems reasonable due to the current market conditions and as the company is a high growth company. It's revenue and net profit are on course to jump by at least 40%. It also has high positive cash flow and sufficient free cash to cover its liabilities. It has also achieved high levels of profitability.
Trade setup - You may enter buy at 260 and set a stoploss at 210. You may exit when the stock reaches 320.
