Hello All !!
Now a Days, I am not Posting a Lot of Things here for Some Reasons, But Still Sometimes I feel the Need to Post Few Things which might help Retail Traders.
Today I will be Discussing about a Stock.
This Stock Looks Very Promising on Technical Scale, as the Chart is Developing Nice Formations, Yet it Failed to Impress us on Few Parameters and is unable to Make it's Place in Our EQUITY MARVELS. so I decided to Post in Open Forum and Will Share the Analysis with You Guys Today.
You May Trade this as Per Your Comfort, Following the Levels Posted or Just Ignore it !! No Need to Express your Smartness here, this is Shared for The Genuine Traders Who Follow us and Trade on our Levels Blindly, Not For Social Media Warriors !!
The Stock is From IT Sector, I am Not Comfortable with the Sector as of Now. So I don't want to talk about Fundamentals and other stuff here, It's Pure Technical Analysis of Charts, Nothing else !!
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The Stock is : KELLTON TECH SOLUTIONS LTD.
Let's Have a Look at the Chart of the Stock.
During all this ups and downs, The Stock has Formed a Bullish Cup and Handle Pattern which is yet to complete and Take Breakout. The Neckline of the Formation is placed around 117 levels and above that we might witness a Strong Rally in the Stock. I will still be Not Comfortable unless and Untill we See Price closing above the Neckline for a Few days. We might also think of the Neckline as a Strong Resistance and Price Might Reverse and Fall Towards The 85 Levels or Below if The Stock is Unable to Show Strength and Cross the Neckline.
To Gather the Strength and Do Accumulation prior to Breakout the Stocks show some Kind of Formations, Which we can see on The Daily Time frame Chart as posted below :
This is a Daily Timeframe Chart of the Recent Time and Here also We Can See a Bullish Formation During a Fall on Higher Time Frame Chart. The Bullish Formation is Cup and Handle Formation with a Small Depth of the Cup but Much Necessary to Gather the Strength of Breakout on Bigger Timeframe.
The Cup and Handle on daily Time Frame gave Breakout at 98 Levels, and as per the Rules and Depth of The Cup, The Target for This Breakout comes around 138 Levels. The Major Resistance as well as the Neckline of Monthly Pattern is Placed at 117, so To Achieve the Target of Small Cup and Handle, Price Must Breakout From The Bigger Cup and Handle Also.
So For me The First Breakout Needs to Cross 117 and Trade above 118, to Achieve the Target of 138, But by the Time it is a Breakout from Bigger Time Frame also, where the Target Comes around 196 Levels as per the Pattern and It's Breakout.
The Trade Recommendation Here is :
BUY KELLTON TECH SOLUTIONS LTD.
Buy Around 100-105
Accumulate on Dips
Stoploss for the Trade : Close Below 85 Levels
Targets : 117 - 138 - 155 - 177 - 196
Caution : The Resistance around 117 Levels is Very Strong, I am Personally Not in Favor of IT Stocks and Particularly The Fundamentals of this Company don't Attract me.
- Follow Risk Management
- Trade as Per your Comfort
- Never Invest More Than 5% of your Capital in This Kind of Stocks.
- We will not Be Responsible for your Trading Blunders and Risk Management.
- Consult your Financial Adviser Before you Enter the Trade.
- If You Don't Have Financial Adviser, Stop Investing.. Hire a Financial Adviser First !!
- Do not Put All your Eggs in One Basket
- Be Cautious on Given Levels, Profit Booking is advised.
The Analyst is an Expert in Analysing The Charts and Global Markets, Having an Experience of 17+ Years in Analysing Financial Markets Across the World and Having a Client Base all over the World. He is a Certified Investment Adviser and a Fund Manager for Global Clients. The Analyst May or May Not Have his Trading and Investing Positions in the Given Stock, His Opinions are not based on Charts Only.
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