The much awaited breakout happened in Maruti In the week before the last one only. But, it is better to not fall prey to failed breakouts. Hence I waited this week to confirm the breakout.
Analysis:-
1) Strong Chart patterns —
Triple bottom formation with triangle pattern breakout.
2) Reclaiming 20WEMA —
So the actual wait was not just the triangle breakout, but, the requirement to close above 20 Week Exponential Moving Average (WEMA). Maruti gave a weekly close above the 20WEMA for the first time after August 2018
3) Momentum —
This price uptrend was accompanied by good volumes indicating momentum.
4) Indicators —
RSI garnering strength and MACD generating a positive crossover
Conclusion:-
A long position here has a potential to capture a healthy upmove of 600 points in coming weeks if the results season goes well. I hold a position in the stock and my personal targets are mentioned in the charts with the 20WEMA acting as the dynamic stop loss.
Analysis:-
1) Strong Chart patterns —
Triple bottom formation with triangle pattern breakout.
2) Reclaiming 20WEMA —
So the actual wait was not just the triangle breakout, but, the requirement to close above 20 Week Exponential Moving Average (WEMA). Maruti gave a weekly close above the 20WEMA for the first time after August 2018
3) Momentum —
This price uptrend was accompanied by good volumes indicating momentum.
4) Indicators —
RSI garnering strength and MACD generating a positive crossover
Conclusion:-
A long position here has a potential to capture a healthy upmove of 600 points in coming weeks if the results season goes well. I hold a position in the stock and my personal targets are mentioned in the charts with the 20WEMA acting as the dynamic stop loss.