Meghmani Organics : Chart Breakdown
The stock is fundamentally sound with growth and earning perspective. The previous year results were excellent with good management commentary.
After a listing gain, the structure of chart becomes bearish as Lower High – Lower Low. The price was moving in symmetrical triangle but respected the listed price of Aug’21.
The positive buying seen in stock in the month of Apr’22, the price consolidated and given breakout with 25% of upside in short term. The breakout did not sustain and retrenchment to 50% fib i.e., level of Rs 114.
The level of Rs 114, acted as key support in current structure, simply means resistance become a support. A long wick with body candle was formed at support level, indicated the sign of price reversion and with positive momentum stock moved further upside; explained below with additional parameter..
Price Structure: The price following DOW theory i.e., current closing price is greater than previous day. It’s a continuous streak of 3 days, mentioned in chart with arrow.
Volume Structure: It is clearly visible that volume is increasing with price movement, favourable structure for long position.
RSI: Relative Strength is above 60, indicating strength in assets.
Moving Average: The price taken a support at EMA 55 and currently above EMA 20.
Thanks
AJ
After a listing gain, the structure of chart becomes bearish as Lower High – Lower Low. The price was moving in symmetrical triangle but respected the listed price of Aug’21.
The positive buying seen in stock in the month of Apr’22, the price consolidated and given breakout with 25% of upside in short term. The breakout did not sustain and retrenchment to 50% fib i.e., level of Rs 114.
The level of Rs 114, acted as key support in current structure, simply means resistance become a support. A long wick with body candle was formed at support level, indicated the sign of price reversion and with positive momentum stock moved further upside; explained below with additional parameter..
Price Structure: The price following DOW theory i.e., current closing price is greater than previous day. It’s a continuous streak of 3 days, mentioned in chart with arrow.
Volume Structure: It is clearly visible that volume is increasing with price movement, favourable structure for long position.
RSI: Relative Strength is above 60, indicating strength in assets.
Moving Average: The price taken a support at EMA 55 and currently above EMA 20.
Thanks
AJ
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