Federal-Mogul Goetze (GOEIND): Long term Rounding breakout… ::ICICI Securities, link

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• The revival of investor sentiment during the last year has seen the midcap
index register a breakout past its 2008 peak after a seven year gap. This
multi-year breakout has seen many stocks from the midcap and small cap
universe rise from long periods of hibernation. The share price of Federal
Mogul Goetze, an auto parts and equipment maker, is at the cusp of
moving out of a seven year consolidation pattern and provides a good
entry opportunity to ride the long term shift of price momentum
• The entire price action since January 2007 till date represents a seven
year long Rounding pattern as highlighted in the adjoining monthly chart.
The strong surge in price momentum since May 2014 saw the stock post
a faster retracement of its last down leg as it recouped a 26 month decline
from February 2012 to April 2014 in just seven months signalling strong
bullish momentum. The stock tested the neckline of the major rounding
pattern placed around | 350 in November 2014. The cool-off in broader
markets over past few weeks has seen the stock consolidate just below
the neckline
• We believe the stock is set to breakout past the seven year rounding
pattern and embark upon its next major up-leg in the coming years and,
therefore, presents a strong case for long term investment. We expect the
current rally off 2014 low of | 174 to move towards 138.2% extension of
the 2009-12 rally (| 27 to | 335) placed around | 550 levels
• Long term monthly MACD oscillator is seen rebounding after taking
support at its trigger line & is seen diverging from its nine period average
suggesting continuance of strong upward momentum in the coming year
*Call has been initiated in i-Click to Gain on December 17, 2014 at 14:35 hrs
LINK
http://content.icicidirect.com/mailimages/IDirect_TechnicalOutlook_2015.pdf