Muthootfin - Symmetric triangle break outNSE:MUTHOOTFIN has broken above the Symmetric triangle. One can long above 515.85
T1 - 530.60
T2 - 552.10
SL - 493.55
MUTHOOTFIN trade ideas
Pennant pattern formation in Muthoot finance dailyMuthoot Finance cash good above 500 SL 495 Tgt 504.50-505/509.50-510 for intraday
My Muhurat Pick 2 - Muthoot FinanceThis is my second Muhurat Pick and a positional call and I would be holding more than 100 days.
Fundamentally the stock is really good with Incremental Quarterly earning, lower P/E than its peers and higher market share.
Technically the stock is in uptrend and would move higher.
MUTHOOT FINANCE_SHORT TERMMuthoot Finance moves in Channel for 9 months. Now near channel support with Hidden Bullish Divergence of price with RSI.
Day Trade - Symmetric Triangle on MuthootfinTrade Long:
Long entry - 513.50
Target - 518
Stop loss - 510.50
Trade Short
Short Entry - 508
Target - 503
Stop loss - 511.50
Note - Trend seems upside
Muthoot Finance- Symmetrical triangle breakout- Buy The major trend of the stock has been uptrend but lately it was contracting in a narrow range forming lower highs and higher lows called the symmetrical triangle. Today it has given a breakout with volumes. Enter if the breakout sustains by end of the day with 464 as stop loss for a target of 525-535.
Bounce from trend line support MUTHOOTFIN bounce from trend line support add near 448 for target 480/500 stop loss close below 435.
Muthoot Fina-lly Completes A “Bearish ABCD” PatternTargets : 403-349 Sell range : 450-460 Stoploss : 511 Duration : 4-5 weeks
Outlook :
The stock is in strong uptrend as it continues to conquer uncharted territories in a rising peak and trough manner. Stock has jumped by more than 50% in last Six Month from its lowest level of 265.0 dt 26-Dec-16.
The key observation on the price chart of Muthoot Finance is that the stocks gradual upmove of the last 5-6 months seems to have completed, as the stock price has started to show weakness from the highs during this week.
Initial evidence of a beginning of declines is visible, as the stock price has lost momentum near Rs 482-480 levels (161.8% of prior corrective move from Rs 406.80 (August 2016) to the levels of Rs 262 (December 2016)), thus forming CD Leg of a Bearish Harmonic setup known to be “Bearish ABCD” Pattern.
Further, Bearish engulfing Candlestick pattern was formed by the stock on 21/06/2017 and Three outside down Candlestick pattern was formed as on 22/06/2017 on the Daily charts, whereas on weekly charts “Bearish Engulfing” Candlestick pattern was formed (shown in red circular object) which is indicating a bearish momentum in coming weeks..
Weekly 14 period’s RSI is in downtrend forming a “Regular Bearish Divergence” with Lower highs and is seen crossing below 70 levels thus supports the negative bias in stocks price.
Based on the above technical observation, we expect the stock price to head towards Rs 403-349 in the coming months, as it is the 38.2% and 61.8% retracement levels respectively (minimum said targets for the above said pattern), Hence advise to sell at CMP and also at rallies. Entry and EXIT levels are mentioned above.
Muthoot Fin:- Amazing set upThe stock has been trading inside a channel for a very long time. CMP 466 ;My view the stock is surely heading for 500+. Please do post your comments below what you feel abt the stock price.
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Breakdown - Muthoot FinanceMuthoot Finance has broken down from its symmetrical triangle pattern and target of 270 can be achieved. Once can go short with a target of 280/270. Given its good fundamentals one can go long again at 270.
