Mohit Industries - A buy on Dip candidateHello everyone ,
I am here with a new power pack stock with a cup n handle chart pattern breakout named MOHIT INDUSTRIES (NSE).
technical view
The stock has given a good Breakout in weekly as well as in monthly Time Frame with good intensity of volume.
the stock have sky touch as the breakout is followed by an Extreme Bullish Chart Pattern i.e Cup N Handle.
CUP N HANDLE EXPLAINATION
Cup N Handle is a chart pattern which is mostly used for bullish road map of the stock.
How it is formed - generally the stock have a huge fall from its high and the stock floats is a range for many years say 4 to 6 years or more, it forms a cup like structure and after that the stock explodes as there is an assumption that there might be the accumulation in the past 4 to 6 years when the cup was forming.
Targets as per Cup N Handle -- The targets usually comes three times the target of cup.
Elliot Wave View-
- the stock is looking in its impulse wave (1-2-3-4-5)
- In that impulse it might have entered the bigger wave 3rd
- the minimum target as per wave 3rd is 1.618 of trendbased fib which is around 48 rs.
- but as per cup n handle it can be extended and might give targets of 72 and 95 as well.
conclusion
the stock looks in its bullish phase, the stock can b lookout for upside mentioned targets with mentioned stop loss on chart itself. one can add at every dip also till stock is above Stop Loss line.
Disclaimer
I am not SEBI registered. consult your financial advisor before any kind of investment. All the studies and ideas posted here are for educational purpose.
