After the price fell from Rs 198 to Rs 28.10, the stock made “Bullish Engulfing Pattern” at the bottom in the weekly chart and moved up. We also saw positive divergence of RSI in weekly chart at bottom. Stock spent the last 8 months consolidating between the broad range of Rs 28 to Rs 67. We saw good volumes during consolidation stage.
We saw triangle breakout in weekly chart with healthy volumes, which is bullish signal for the stock.
On the oscillator front, RSI is moving well above its average and in urge to break the trendline resistance in weekly chart.
We also saw positive crossover of MACD with its average in positive zone in weekly chart.
Looking at all these indicators and patterns, I expect the price reversal in the stock for the target of 123/191, which is the 61.80% and 100% projection level of previous bull run. (CMP: 51.65)
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