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United Phosphorus: Confirming a triple bottomNooresh Merani | Published: 28 Dec, 2012 | Source : ValueNotes.com | Follow Author |
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 +