ELECON trade ideas
Elecon Engineering Ltd.- Ascending Triangle Flag on Daily ChartBreakout Candle: Daily candle dated 13th August 2021
Breakout Candle Close: 161.90
Anticipated Price Target: 200
Suggested Stop Loss on daily closing basis: 155 (for the first 4 daily candles starting from 12th August 2021). Thereafter the book the profit/ exit on attainment of the price target or downward crossover of 26 EMA by 5 EMA whichever is earlier.
RR Ratio: 1:5
NOTE: This idea is an attempt to predict the future price movement. Investment decision based on this idea, if any, shall be solely at the risk of the investor.
Elecon Engg - Channel Breakout post good resultsBUY GUIDANCE:
Never ever buy before 3PM . I have been burnt many many times. Try to buy between 3:15 - 3:30PM, later the better.
SL: Depending on your risk appetite: Below Weekly BO Candle / Below Daily BO Candle / 50% of Weekly BO candle / Below 20DMA
TGT: After a 10-15%+ vertical move, breakdown of 20DMA (on a daily close basis)
SELL GUIDANCE:
Selling in Profit:
Sell earlier in the session when the prices are higher, around 11AM.
Selling at SL:
Give your stock a chance to recover by end of session. If it doesn't recover, sell anywhere between 3:00 - 3:30PM.
Note: I reserve the right to be wrong.
DISCLAIMER:
I am not a SEBI registered analyst. Please consult your financial advisor before investing.
A Multibagger Stock InsightThe small cap company, Elecon Engineering Company, has given a multi-year breakout and is poised to give 2x/3x return from here if the business performs the same way like the last few quarters.
The company has reduced its debt alongside showing signs of good growth on the revenue and the operating profit front.
One can wait for the stock to retest the levels of 110 else start accumulating for higher targets with time frame of 12-15 months.
#TradeTheTrend
