23 December 2014

Ramco Cement (MADCEM): Long term Cup & Handle breakout… ::ICICI Securities, link

Please Share:: Bookmark and Share

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

��
-->
• The midcap cement space has garnered a lot of investor interest
throughout 2014. While stocks like JK Cement and JK Lakshmi, to name a
few, have already mopped up strong gains in 2014, we foresee a similar
opportunity emerging in Ramco Cement for the upcoming year
• A look at the long term price chart reveals that the entire price movement
since 2007 till mid-2014 took the pictorial shape of a well defined Cup &
Handle pattern as highlighted in the adjoining chart. A Cup & Handle is a
bullish reversal pattern having positive implication on the price front upon
resolution above the neckline of the pattern
• The stock scaled past the neckline formed by joining the yearly highs of
2007 (| 253) and 2013 (| 273) in June 2014 to signal a long term trend
reversal and start of a fresh bull trend. The breakout rally saw the stock
rally to a new life high of | 380 in November 2014. The recent look back in
prices to re-test the major breakout area provides a good investment
opportunity to ride the expected uptrend in the coming year
• The minimum measuring implication of the price pattern i.e. the distance
between the neckline and the base of handle (| 280 – 135 = 145 points)
added to the neckline projects upside towards | 425 levels for the current
up move
• Behaviour of volumes over a longer horizon charts also corroborates the
underlying strength in the trend. The price declines have been
accompanied by receding volumes while rallies have been backed by
stronger volumes highlighting larger participation in the direction of
primary trend
* Call has been initiated in i-Click to Gain on December 17, 2014 at 12:52 hrs
LINK
http://content.icicidirect.com/mailimages/IDirect_TechnicalOutlook_2015.pdf

No comments:

Post a Comment