GMDC - Crossing core resistance levels
Mis à jour
Scrip should manage to cross the crucial resistance levels marking new highs if candlestick pattern of three white soldier is completed :)
Breakout from resistance line and trendline with higher volume surge and consolidation in "Overbought* situation like seen earlier can take it to new highs
Bullish strength affirmation
1) SMA - 15 SMA is above 200 SMA and Price range has gone below 15SMA so for now, there is strength in the scrip movement
2) Golden cross - As marked in chart, Short-term moving average (such as the 15-day moving average) breaking above its long-term moving average (such as 50-day moving average) The golden cross indicates a bull market on the horizon and is reinforced by high trading volumes however, high trading volume is yet to be seen as prior for reinforcement to be gained
Still, Invested with the company due to its good fundamentals
Breakout from resistance line and trendline with higher volume surge and consolidation in "Overbought* situation like seen earlier can take it to new highs
Bullish strength affirmation
1) SMA - 15 SMA is above 200 SMA and Price range has gone below 15SMA so for now, there is strength in the scrip movement
2) Golden cross - As marked in chart, Short-term moving average (such as the 15-day moving average) breaking above its long-term moving average (such as 50-day moving average) The golden cross indicates a bull market on the horizon and is reinforced by high trading volumes however, high trading volume is yet to be seen as prior for reinforcement to be gained
Still, Invested with the company due to its good fundamentals
Note
Third soldier has arrived with engulfing blue candlestick. Anticipating the scrip to cross 165-170+ levels now after breakout from resistance line and trendlineTransaction en cours
Closed at 174.20 CMP and still bullish momentum persists..Note
However, One needs to be wary and book partial profits as The scrip has reached the crucial resistance level from where it took reversal back then in 2014. Golden cross (MACD) gives more bullish touch this time for the momentumNote
Scrip should take bullish reversal due to formation of bullish harami candlestick and one can again aim for resistance (neckline) if the trend continuesTransaction en cours
Have added more on dips averaging the price to lower level as the company has shown good progressive result QoQ basisindiainfoline.com/article/equity-earnings-result-commentary/gmdc-s-q3fy18-standalone-net-profit-rises-68-8-yoy-to-rs78-55cr-118020900797_1.html
GMDC's Q3FY18 standalone net profit rises 68.8% yoy to Rs78.55cr
Should able to see the price action crossing core resistance levels of 177 if NIFTY supports
Note
MACD golden cross also to be seen where The golden cross is a bullish breakout pattern formed from a crossover involving a security's short-term moving average (such as the 15-day moving average) breaking above its long-term moving average (such as 50-day moving average) or resistance level.Note
Impact of lower GST implication being seen :)google.co.in/amp/s/m.economictimes.com/markets/stocks/news/lower-vat-on-lignite-in-gst-regime-to-boost-gmdcs-profitability/amp_articleshow/57764024.cms
Transaction en cours
Added more on dips. Expecting the scrip to retrace back toward resistance levels with pin bar in action although the tail came out more on upward side henceforth signifying bearish touch Core fundamentals still remain strong if we see in terms in future growth with "Lower tax, higher volumes and better realisation will continue to drive growth. The company is gradually pumping in surplus cash into the business thus increasing its mining production."
moneycontrol.com/news/business/moneycontrol-research/gmdc-growth-attractively-priced-2523673.html
Transaction en cours
Added some notes based upon my fundamental analysis as the said reasons might have seen prolongled downtrend for the scrip earlier during 2014 although MACRO factors are seen strong this time!evernote.com/l/ACDQ_YrmMPVAdIBWFfcYG0Ilfy3txrO63McB/image.png
Transaction en cours
Necessary for price action to take reversal with bullish pin bar or doji in play and crossing the resistance trendline as shown --Transaction en cours
Doji candlestick heneforth forming indecision among traders. Can we see reversal from hereon like seen earlier :)Transaction en cours
Scrip has already seen sufficient downtrend and now, should be to retrace owing to strong fundamentals, lignite monopoly and currently trading at attractive valuation. The last trading session showed huge hike in volumes with Deliverable quantity to traded quantity above 85% with trading volume above 10 lacs. As per CANSLIM approach, S: Supply and demand - Strong demand for limited supply of available shared will drive price up so we might see increased demand by spikes in trading volume which will further take the surging momentum upwards
Transaction en cours
Bullish Divergence spotted: Indicates underlying strength. Bears are exhausted.Warning of possible trend direction change from downtrend to uptrend with price seen with lower low however, Oscillators are showing higher high
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