Best possible Swing trade!!
Updated
Hello fellow traders,
In this post i am sharing a possible swing trade setup. The stock is RCF(Rshtriya Chemical fertilizers).
TECHNICAL ANALYSIS: As you can see the stock is bullish from 2020 by forming higher lows and higher highs and also takes support at the trend line from 2020. Now the stock has retraced back after forming a higher high and is now on the move to make a new higher high. We can see that it is now forming a cup and handle formation and is about to break out of it. It is also being supported by the 21,50 and 200 daily EMA's.
FUNDAMENTAL ANALYSIS: The company is a fertilizer company. Now is the time of monsoon in India, the time when most of the agricultural practices start and meets the need of a huge population of 1.42 billion people of the country. And more than 50% of the population depends on agriculture for their livelihood. With monsoon starting,the demand for the fertilizer will increase as fertilizer is an important part in the agricultural industry. This may attract FII's as well to make use of the opportunity pushing the stock price up.
RISKS: Monsoon is really important for Indian agriculture. But if the El Nino effect in there in the Pacific it will seriously affect the rainfall the country will get, which will force farmers to stop their cultivation. This could affect the fertilizer demand. As of now the monsoon has reached some south west States of India but the cumulative rainfall till June 20 is said to 33% less than the normal. And the monsoon only reached the country only after fews days from it's normal and estimated time , all thanks to the Biporjoy cyclone. But the IMD says that India will receive 94% of the rain that it gets normally even though there are some barriers in front of it.
You may take the trade once the price breaks above the cup and handle formation (above the marked daily resistance) and keep SL below the resistance (now support) which the price broke. And Target the higher high or the previous high.
DISCLAIMER: THIS IS SOLELY MY VIEW OF THE STOCK AND NOT A FINANCIAL ADVICE. I WILL NOT BE RESPONSIBLE FOR THE TRADES YOU TAKE. DO YOUR RESEARCH,BE WISE AND MANAGE YOUR RISKS.
In this post i am sharing a possible swing trade setup. The stock is RCF(Rshtriya Chemical fertilizers).
TECHNICAL ANALYSIS: As you can see the stock is bullish from 2020 by forming higher lows and higher highs and also takes support at the trend line from 2020. Now the stock has retraced back after forming a higher high and is now on the move to make a new higher high. We can see that it is now forming a cup and handle formation and is about to break out of it. It is also being supported by the 21,50 and 200 daily EMA's.
FUNDAMENTAL ANALYSIS: The company is a fertilizer company. Now is the time of monsoon in India, the time when most of the agricultural practices start and meets the need of a huge population of 1.42 billion people of the country. And more than 50% of the population depends on agriculture for their livelihood. With monsoon starting,the demand for the fertilizer will increase as fertilizer is an important part in the agricultural industry. This may attract FII's as well to make use of the opportunity pushing the stock price up.
RISKS: Monsoon is really important for Indian agriculture. But if the El Nino effect in there in the Pacific it will seriously affect the rainfall the country will get, which will force farmers to stop their cultivation. This could affect the fertilizer demand. As of now the monsoon has reached some south west States of India but the cumulative rainfall till June 20 is said to 33% less than the normal. And the monsoon only reached the country only after fews days from it's normal and estimated time , all thanks to the Biporjoy cyclone. But the IMD says that India will receive 94% of the rain that it gets normally even though there are some barriers in front of it.
You may take the trade once the price breaks above the cup and handle formation (above the marked daily resistance) and keep SL below the resistance (now support) which the price broke. And Target the higher high or the previous high.
DISCLAIMER: THIS IS SOLELY MY VIEW OF THE STOCK AND NOT A FINANCIAL ADVICE. I WILL NOT BE RESPONSIBLE FOR THE TRADES YOU TAKE. DO YOUR RESEARCH,BE WISE AND MANAGE YOUR RISKS.
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The price broke the resistance yesterday, all the best traders.
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