A look at the chart pattern in Arvind indicates lot of buying interest. The company reported its September quarter earnings last week which was not disappointing. The company posted an improvement in revenue from operations as well as profitability. The stock price has also been moving up steadily and technical patterns suggest that there is more room to the upside.
From the above weekly chart, it is evident that the stock has been consolidating in a trading range of Rs.58-110 since mid-2011. The recent rally has pushed the stock to the upper end of the trading range at Rs108-110. The blue set of lines, featured in the above chart, have been in tune with the price action.
The stock last week completed a bullish “outside day” pattern and closed above the blue center line. This is a positive sign and we expect the stock to hit the upper blue line at Rs.130+
The positive outlook would be invalidated if the stock falls below Rs.99. A breakout past Rs.130 would open up further upside potential. But, let’s talk about higher targets after the stock reaches the upper blue line.
(The view featured here is based on Technical Analysis of historical stock price action. Please read the Disclaimer)
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with the current correction, is this chart still valid?
Hello:
The chart and the recommendation is valid despite the correction today. If you notice, we have suggested buying on dips in order to minimize risk. Our recommendation would be valid as long as the stop loss is not violated.
Regards
B.Krishnakumar
Hi Krishna, what is the general time frame of holding required for your recommendations? Thanks.
Hi Sheetal,
WE typically do not have a time frame attached to the recommendation. If the overall markets are supportive, we would expect our target to be hit within 3-4 weeks.
The recommendation remains valid as long as the stock trades above the stop loss / support level mentioned in the copy.
Regards
B.Krishnakumar
Thanks Krishna for the reply, I am tempted to ask one more 🙂 May I ask how has been the success ratio of the recos provided so far? Thanks, you may choose not to answer my question too…
Hello:
Appreciate your interest towards our blog. I’ve mailed you my reply. Hope that answers your question. If not, please feel free to drop a line.
regards
B.Krishnakumar
Krishna,
Can you please email me as well 🙂
Thank you
Superb Call Ji…
holding period will be 3 to 4 months expected target as its exports are doing well but its local sales have been on the downtrend.
with the current correction, is this chart still valid?
Hello:
The chart and the recommendation is valid despite the correction today. If you notice, we have suggested buying on dips in order to minimize risk. Our recommendation would be valid as long as the stop loss is not violated.
Regards
B.Krishnakumar
Superb Call Ji…
holding period will be 3 to 4 months expected target as its exports are doing well but its local sales have been on the downtrend.
Hi Krishna, what is the general time frame of holding required for your recommendations? Thanks.
Hi Sheetal,
WE typically do not have a time frame attached to the recommendation. If the overall markets are supportive, we would expect our target to be hit within 3-4 weeks.
The recommendation remains valid as long as the stock trades above the stop loss / support level mentioned in the copy.
Regards
B.Krishnakumar
Thanks Krishna for the reply, I am tempted to ask one more 🙂 May I ask how has been the success ratio of the recos provided so far? Thanks, you may choose not to answer my question too…
Hello:
Appreciate your interest towards our blog. I’ve mailed you my reply. Hope that answers your question. If not, please feel free to drop a line.
regards
B.Krishnakumar
Krishna,
Can you please email me as well 🙂
Thank you