Strong rangebound consolidation & near breakout
400 range entry with SL below 385-375 support range
at 325 entry level took 200ema daily support & RSI divergence
Praj Industries
It is engaged in the business of process and project engineering.
Breaking out after almost 7 months of consolidation.
Target : 495,590
SL : 380 WCB
Only for educational purpose. Not a recommendation.
This is Weekly timeframe.
After covid crash, this stock have rallied multifold times.
Yes, there are a lot fundamental triggers.
From June 2021 it went sideways, in consolidation phase.
It didn't went far from 0.23 fibo level. If sustained near it and consolidated.
The correction is not more than 30% from top.
These are strength indicators here.
Now for last...
Praj Industries has broken out after a very long consolidation. Keep a stop loss at 380 and the stock should double in the next 1 year. Praj is part of my fundamental research as well and the story around ethanol is picking up more and more steam.
beautiful set up on chart, long consolidation... Channel BO candidate, double bottom candidate, RSI BO, RSI @ 69 (good) & Increase in volumes over the consolidation period...all makes it a perfect BO candidate..a perfect text book example!.wait & watch..will it give a BO?
Disc : Invested, not a reco for Buy/sell
The company has shown a good profit growth of 31.29% for the Past 3 years.
Company is virtually debt free.
Company has a healthy Interest coverage ratio of 42.47.
The company has an efficient Cash Conversion Cycle of 49.62 days.
The company has a good cash flow management; CFO/PAT stands at 1.26.
TRADE OR INVEST wisely.
WE CAN JUST PREDICT.
Disclaimer: I am not...
