30% buy on each level GAL - PSXI am going to purchase 30% of my portfolio in this stock. What about You?
Let me explain why I am buying so i can keep it as record. I will visit this setup again and review my analysis again.
In all of the fundamental analysis of around 200 PSX companies of PSX, this company comes at No. 1. Here is the reason.
Revenue CAGR of 49.39% second to Sazgar in Automobile Sector.
Net Income / Profit after Tax CAGR for 5 years is as huge as 72%, second to sazgar in Auto Sector.
Net Margin of 14% while sazgar has 15 %
The largest inventory makes the difference amongst automobile sector.
Negative Fundamental
ROICE 7% lowest amongst auto sector.
Technical chart:.
With good fundamentals and upcoming Rekodeq project, I am bullish on my technical bias. I will make interval buying as per the mentioned levels.
1st Buy
On Market Buy around @563 because it already broken the Bullish Flag. I will at 30% of my portfolio to my first Buy.
2nd Buy (30% more):
Because the price has a bearish divergence, I therefore will wait if the price is breaking the previous lower low at support level @492, if not then 2nd Buy triggers.
3rd Buy (40% More):
The price needs to goes up and breaks 586 area then more buying and then wait for the price to touch my target.
Negative aspect of Bullish Bias.
The Bearish divergence needs to be dilluted Well, its a question mark and I will wait for the breakout of the current top to disrespect this obvious divergence.
