Solar Stock Jumps 9% After Commissioning 143 MW / 481 MWh BESS in Rajasthan
MRF tyres is an equity that has been trading in identical swing patterns from a while now. But I expect the current downswing to last a tad longer than the previous swings. I expect the equity to drop by a further 1,229 points after which it shall flatten out. Below is a review of the equity in both the fundamental and technical aspects.
On the EPS strength front, we see that the equity has a mediocre earnings growth rate which has out it below several of its industry peers in this aspect. Thus, this factor is not allowing the equity to separate itself from the crowd. Whilst for the price strength of the equity we see that it performs in a mediocre manner in this respect too. The equity used to be a stock with price leadership but that has now been severely hampered by the extremely high unrealistic price of the equity. Furthermore, we note that the accumulation/distribution rating of the equity is very positive as there is a strong level of professional buying.
On the candle stick pattern front, we see that the equity has just had a three black crows pattern which is basically three consecutive falling bearish candles. Moreover, we see that the candle seen yesterday closed exactly at a critical fib support level but I do not expect this fib support level to hold due to the bearish momentum in the equity. The next critical fib support level is a further 1,200 points below.
On the moving average facet, we see that the equity broke below the 50 day moving average and that too with the full candles body and wicks. We see that the 100 day moving average is currently right at the critical fib support level 1,200 points below. Moreover, for the 20 day MA we see that it has recently risen over the 50 day MA after a small stint where it had dipped below it.
For the two ADX values I utilise we see that the value of the shorter term ADX has started ascending and has manage to crack the 30 mark. Moreover, for the longer term ADX value I utilise we see that it fully flattened out last week and now has started a mild ascent. On the RSI anterior, we see that the line has flattened out too thus showing that the trend is slowly neutralising from the prior bearish daggers fall.
Overall, I expect the equity to tumble for 1,200 points after which it shall gain some traction sideways. The equity’s performance has been severely hampered by the high price level which the firms management have refused to address by utilising one of the tools in their belt.
Good luck trading.
Sandeep Singh Ahluwalia