Long Relaxo Long relaxo above the marked area. All important levels has been marked on the charts. Keep the stock in your watch list. This is for your educational purpose only.
Relaxolong
Trendline breakout and Trend Reversal in RELAXORELAXO - Expected Value Buying in coming weeks. Consolidation near Resistance and breakout of falling trendline expected. Its good stock to accumulate at this price. Good to add above 866 for short term.
Relaxo Technical analysis - Long term Daily chartRelaxo corrected about 40% from ATH and consolidating since Nov' 2021. The stock is trading at support trend line drawn from July 2017 and the stock price never broke the support line from last 5 year.
The stock bounced back 10% from the 54 week low and will be testing the support line at 760-800 levels in the coming months. With the stop loss of 20% one can take a directional trade for the long term of 3-4 years for 50% returns.
Buy levels - 780-840
Sell - First Target - 950
Second target - 1070-1120
Target - 1360
Stop loss/Average - 600-640
RELAXO - Stock to buyRecommendation:
Short Term Buy: 1108
Short Term Target: 1185
Short Term Stop Loss: Below 1048
Long Term Buy Range: 1048-1108
Long Term Target: 1448-1775
Long Term Stop Loss: 985
Multi Year Trend Support - RELAXOThe chart speaks for itself.
S1 seems like a good buying range upon a strong bounce.
If S1 breaks, S2 seems like the next best support as per Fib and Price Action as well.
RSI has reached 30 in weekly chart showing some MOS.
The PE ratio has been high due to fall in EPS this year. However, such setbacks are temporary in nature for a fundamentally strong company like Relaxo and the smart thing to do is to accumulate it at low prices and hold.
This is not an investment advice. Only for research purpose.
LONG - RELAXO FootwearsRELAXO has been following a bullish ascending parallel channel as observed in daily and weekly timeframe and close to breakout levels from this channel pattern as it scales it all time high.
Indicators confirming/strengthening our bullish conviction for RELAXO:
The Stochastic RSI gave a leading crossover indcation at levels of 1340 which was confirmed by the long bullish candle with an high of 1408.
This confirmation candle broke out of of horizontal parallel channel in which the stock was consolidating for around 18 trading days and also gave a clear MACD crossover.
Action:
Either investors can wait for retest of 1380 levels for buying opportunity or else if the stock breaks open out of ascending channel pattern then buy at levels above 1450.
Fundamentally STRONG stock can be hold for long term.
Relaxo Footwear_40% Upside target in 11 monthsDate: 01 Jan 2021
Relaxo Footwear
CMP: 821
It is forming Ascending Triangle Pattern. If the price breaks out above the resistance of 830 and sustains strongly with good volumes over the next 5-10 days then upside target price will be 1,160 for which the target date will be 30 Nov 2021. The stock is already trading well above all its Daily EMAs.
The stock trades with RoCE @23.4%, RoE @19% and EPS of 9.11. The CAGR of last 5 year's. EPS is 12.7% which is a good growth rate for EPS.
Operating Profit Margin has improved from 14% to 18% in the last 5 yrs. On QoQ basis the OPM has been increasing sequentially 14% (Sep 2018), 17% (Sep 2019) to 22% in Sep 2020. This gives rise to expectation that the OPM will keep rising in the coming years with higher sales volume and better operating efficiencies.
Target Price: 1160
Target Date 30 Nov 2021
Stop Loss: 750
