Hello Friends,
Suddenly came across a stock, which I ignored most of the times for whatever reasons.
The Stock is MCX India Ltd. yes, The Stock is on Our Radar with a Good Formation. I don't mind trading the stock if the formation is good on chart and the Business model also follows the same.
MCX India is a big player in Indian Commodity Markets and MCX India Ltd. is a key partner in establishment and development of Commodity Exchange in India. The Business model is attractive with a Big Market share in the field and where the earnings are automated through Commissions. The stock saw a Sharp sell off after the Spot Exchange failure. After the Sell off, Now things are settled down and the stock is witnessing increased attention by traders and investors with a rising chart formation.
Look at the Daily time frame chart, We see a Breakout from the Falling trend and price crossed the trend line resistance shown by the Red colored line. After breakout price retested the trend line and reversed to continue it's uptrend. While Moving above the trend line resistance, the price formed a Rounding Bottom formation, which is considered as a reversal chart pattern after a falling trend and it is considered as a successful chart pattern having best success ratio.
The Neckline of the Rounding Bottom is around 1065 level and the Bottom is around 720-730 levels. it gives a Rounding Bottom/ Saucer height of 330+ points. The Stock price managed to breakout above the Neckline area which is considered as a tough resistance.
Next Chart will be on Weekly Time frame and it will be a shock for traders and investors..
This is a Weekly time frame chart showing a Huge Cup and Handle Chart Pattern formation. Stock is currently trading near the Neckline around 1074 level.The Neckline resistance is around 1090 levels. It will act as a Tough Resistance.
If we remove the Cup and Handle Drawing, considering the upper trend line and the lower trend line, we can see the price is moving in a triangle and the chances of breakout are good if Market moves in bullish mood for next couple of weeks. we need the price to move above the trend line resistance which is ultimately the Neckline of the formation.
In this Chart on Daily Time frame, We clearly see a Rising Channel Formed by the Stock price and at the Last Stage, Moved out of the Channel indicating more Fresh upside.
Now we have some immediate Resistances to cross ahead...
Current Market Price as on 2.10 am on 12th July 2016 is 1074.05
Next immediate Resistance zone is upto 1100 ... Multiple resistance are playing out in the 30-40 Rs. zone. Once 1100 is crossed 1140 and 1185+ are 2 Resistance. While on the Down Side 1040 & 1010 are 2 good supports.
The Chances of Price above 1100 are more, but never jump in any trade. If 1100 is not crossed decisively, we might see a Good Correction in the Stock, which will last for many days and will be big correction of 100-200 points to reach the Rising channel support. So trade cautiously and follow strict Risk / Money Management.
We Recommend :
BUY MCX India Ltd. above 1100 with a Stoploss of 980 levels and a Take Profit around 1280 - 1440 and Much More.
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Disclaimer :
The Analyst
does not have any holdings or any vested interest in the recommended stock. The
stock may be recommended to our clients, We suggest proper Risk Management
before entering the stock. Consult your Investment Advisor before entering the
stock.
The Analyst
is a SEBI Certified Investment Advisor and Global Market Expert having expertise
in technical analysis and working as an Advisor and Fund Manager for Clients
across the world since last 6 years. Having an Experience of Investing in Stock
Market of about 8 years. You may Contact the Advisor for Queries and Services
through WhatsApp and Email
WhatsApp :
+91 8275 298 2008 / Email : 4x.magician@gmail.com
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