As you have seen in my last article,
there was a nice example of Descending Triangle Breakout. Here is one
more stock which is trading in triangle zone and we are trying to catch
it before the breakout.
Godrej Consumer (NS:GOCP) is an Indian consumer goods company headquartered in Mumbai. GCPL's products include soap, hair colorants, toiletries, and liquid detergents, etc. Also, this is one of the leading and reputed company of FMCG sector.
Technical Overview of GODREJCP: Below picture is the chart of the daily time frame. We can see stock price made top around 980 (on 31st August 2018). Also, it has given a bearish signal on the next day by creating a Bearish Engulf chart pattern and rally converted into the fresh drop. After 1 ½ month stock price took support from 645 and has given pullback of 200 points in-between 09th October to 12th December 2018. On 03rd April 2019, stock chart made Bullish Harami pattern. I hope that stock price is ready to touch levels of 700 thereby completing triangle pull back.
My view on this study is that when the stock price is trading in triangle and triangle is becoming narrow then it is ready for a breakout. So we shall buy this stock from current levels i.e. 675 for a target of 700 and more 750. Keeping a small stop loss of 650 is advisable.
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Disclaimer: The contents produced here are purely for educational purpose. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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Godrej Consumer (NS:GOCP) is an Indian consumer goods company headquartered in Mumbai. GCPL's products include soap, hair colorants, toiletries, and liquid detergents, etc. Also, this is one of the leading and reputed company of FMCG sector.
Technical Overview of GODREJCP: Below picture is the chart of the daily time frame. We can see stock price made top around 980 (on 31st August 2018). Also, it has given a bearish signal on the next day by creating a Bearish Engulf chart pattern and rally converted into the fresh drop. After 1 ½ month stock price took support from 645 and has given pullback of 200 points in-between 09th October to 12th December 2018. On 03rd April 2019, stock chart made Bullish Harami pattern. I hope that stock price is ready to touch levels of 700 thereby completing triangle pull back.
My view on this study is that when the stock price is trading in triangle and triangle is becoming narrow then it is ready for a breakout. So we shall buy this stock from current levels i.e. 675 for a target of 700 and more 750. Keeping a small stop loss of 650 is advisable.
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Email: rajputsagar111@gmail.com
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Disclaimer: The contents produced here are purely for educational purpose. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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