PMI data ahead; U.S. warns of "tough" sanctions on Iran - what’s moving markets
Many people have asked me questions about previously identified chart patterns. Many people use indicators, oscillators, etc. and make simple things to complicate. As per my point of view, technical analysis is nothing but the only price action and volume. If we keep it simple then we can get fruitful results.
The company was established in 1970, as Shri Ram Fibres Limited by DCM Limited as a wholly owned subsidiary. Its initial focus was on the manufacture of nylon cord fibers for tires. Over the years, the company diversified its product offerings into technical textiles, engineering plastics, chemicals, and packaging films. In 1990, it changed its name to SRF (NS:SRFL) Limited.
Technical Overview of SRF: In the below picture, we can clearly see the Flag Break Out. After a small corrective move on 9th May, the stock price has given big rally in next 3-4 trading sessions and made the Pole. From 20th May 2019, the stock has started to make a flag and it has completed in 20 trading days. These 20 trading days were too volatile due to parliament election. Last Tuesday stock has given Breakout to Flag and made new lifetime high. Volumes were good on breakout day that means fresh buyers were entering. Also, the stock is trading above all major moving averages and was in an uptrend.
On 19th May stock price has shown some profit booking and took support around flag upper layer. Stock is trading near lifetime high and as per Flag pattern, it is ready for the fresh rally from current levels. We can enter in stock from current levels i.e. 2970-2975 for a target for 3050, 3100 or more. Keep small stop loss of 2850 on closing basis.
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Disclaimer: The contents produced here are purely for educational purpose. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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