Trade idea on HAL with good R:RHindustan Aeronautics
Technical:
CMP: 1296
Buy after it crosses 1313 on the hourly chart and is confirmed
Targets: 1425, 1568
SL: 1230
Rational: Both wedge + FIB breakout, already seeing increase volumes
Fundamental Top 5 points:
⁃ Services entire army fleet and >70% IAF and Navy
⁃ Decreasing inventory days reducing working capital needs
⁃ Strong order book
⁃ Consistent ROE > 20%
⁃ Reducing debt and Kd at 5.32%
Quick Valuation:
⁃ Trading at a PE of 13.33x - closest peer: Bharat dynamics trades at 20+ and other New listed IPO companies: Paras defence and data patterns trade >60PE (they are however only into design)
HAL trade ideas
hal trade setuppossible trend reversal is noticed in the stock, overbought rsi in weekly chart onfirming a bearish candle in weekly chart followed by a short doji with long upside wick indicating a price decline can happen , setting a stoploss at 1400 on daily close it can be short for target 1315, last intrady low, breaking it it can go further low else a double bottom can be seen to resume its uptrend.
HAL Bearish Gartley and Bearish Deep Crab pattern Terminal BARHAL is on Harmonic Resistance and a Reaction is possible.
Two Patterns are in progress.
(1) Larger scale Gartley Pattern with Level Hit and terminal Bar in progress today. SL for Gartley is FIB Level 1 of XA Leg. (This pattern is more visible on Weekly and Two Day Chart)
(2) Smaller Scale Crab Pattern with Fib Level Hit and Terminal BAR Completed today (This pattern is more visible on 4 Hr 6Hr and Daily)
We always play for Type-1 Reaction and we still wanna wait for Some sort of consolidation breaking down, Bearish DIV in RSI or W pattern in RSI or Reversal Candle with Volume Supported Move.
Again- Harmonics are just a way to find where Reversal comes but trend is always super and we can clearly see that trend is up and bullish.
harmonictrader.com
harmonictrader.com
HAL ::: BULLISHL O N G T E R M T R A D E
SIP TRADE
DATE: 20 MAY 2021
INSTRUMENT: HAL
TREND: BUY
TIME FRAME: DAY
CMP: 1014.75
BUY ABOVE: 1022
STOP LOSS: 980
TGT 01: 1080
TGT 02: 1090
DISCLAIMER:
We are not S E B I registered analysts. Please consult your personal financial advisor before investing. We are not responsible for your profits/losses whatsoever.
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