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WELCORP

WELCORP Buying Opportunity. Wait for entry.Please read this completely before investing. Past Behaviour: WELCORP had consolidated between 123 and 101 for a long time before breaking out to 145 odd levels. The swing low before the breakout commenced an uptrend that is more aggressive than the one started in June 2020. Analysis The stock is consolidating above the previous consolidating levels and is forming a pennant like pattern. On break out of the pennant, the stock might face strong resistance at 150. Strategy Buy x quantity at 122 Buy x quantity more at 118 (Same qty) Buying Average: 120 (2x quantity) Let us assume x = 100, and hence we will have 200 shares at 24,000 Stop Loss: 111 Target: 144, 150, Open (Book half at 144 and trail SL to 138 for 150) Risk of Capital Investment: 24,000 Max Loss: 9*200 = 1,800 (7.5%) Max Profit at 144: 24*200 = 4,800 (20% on investment) Risk to Reward Ratio: 3:8, roughly 1:3 P.S: I am not a registered analyst so please consult your advisor before investing.
NSE:WELCORPLong
by ShekharChatterjee
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