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United Phosphorous – Confirming a triple bottom

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United Phosphorus: Confirming a triple bottom

Nooresh Merani | Published: 28 Dec, 2012  | Source : | Follow Author | Add to my Favourites


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For the last 1-2 years the zone of 125-133 has been a  critical resistance and support area.  Consolidating at 120-130 indicates a setup for breakout.

Some more technical Observations

-> There are 3 bottoms in the band of 105-110 in the last 6 months which clearly indicate a strong base is built.

-> After the previous two bottoms the stock jumped back sharply to 125-135 band but could not sustain for a couple of weeks also.

-> For the last 3-4 weeks the stock has been sustaining the 120-130 range indicating its gaining strength before the breakout.

-> A clear confirmation of a breakout will be on sustaining above 130 on closing basis or crossing 135 in the day.

-> The immediate target in that case would be 150 and next at 170 which remains a major long term resistance.

-> The strategy should be to accumulate the stock at 124-130 levels with a closing stoploss of 120 and upside target of 150 +

Article by Nooresh Merani

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