RPG Life Sciences- Positional
RPG Life Sciences is showing a confluence of some important technical analysis patterns.
The analysis is based on the longer timeframe chart i.e. Weekly. This is more suited for positional trading or investment and each candle represents activity for a week.
ATH- the stock has broken the all time high of 1 January 2018 on 30 August 2021 and now taken off from the support of 610 levels with strong body, wide ranging bullish candle. While the volumes of 6 September 2021 were higher than average, selling pressure was met with strong demand as seen with the candle of 13 September 2021 with volume expansion followed by the candle under formation of 20 September 2021. Upper wick suggests presence of sellers and we will have to wait and watch how the candle closes at the end of the week.
Golden Cross- the 50 MA crossed over the 200 MA from below on 1 February 2021.
Rounding Bottom and Relative Strength- Volatality contraction cane be seen and Relative Strength against CNXPharma has started outperforming since 26 July 2021.
Candlesticks- 18 January 2021 onwards on big volume days, bullish candles are forming strong bodies and bears are unable to take price lower.
With a bird's eye view on the Fundamental side, the stock has a small equity of INR 13 Crore, zero debt, expansion in operating margins, increase in EPS and improvement in RoE at 20% approximately.
Risk - risk management is key in trading and investment. At this stage in the market cycle, an SIP or STP (systematic trading plan) approach helps in mitigating risk. Stop Loss could be midpoint of 30 August 2021 candle i.e. approx. 550. That is roughly 25% from CMP and would give the stock enough room to move for positional trades.
Disclaimer: I am not a registered investment advisor. Please consult your investment advisor for any buy/sell decisions. This post is shared with the objective of peer group learning and comments from experts.
The analysis is based on the longer timeframe chart i.e. Weekly. This is more suited for positional trading or investment and each candle represents activity for a week.
ATH- the stock has broken the all time high of 1 January 2018 on 30 August 2021 and now taken off from the support of 610 levels with strong body, wide ranging bullish candle. While the volumes of 6 September 2021 were higher than average, selling pressure was met with strong demand as seen with the candle of 13 September 2021 with volume expansion followed by the candle under formation of 20 September 2021. Upper wick suggests presence of sellers and we will have to wait and watch how the candle closes at the end of the week.
Golden Cross- the 50 MA crossed over the 200 MA from below on 1 February 2021.
Rounding Bottom and Relative Strength- Volatality contraction cane be seen and Relative Strength against CNXPharma has started outperforming since 26 July 2021.
Candlesticks- 18 January 2021 onwards on big volume days, bullish candles are forming strong bodies and bears are unable to take price lower.
With a bird's eye view on the Fundamental side, the stock has a small equity of INR 13 Crore, zero debt, expansion in operating margins, increase in EPS and improvement in RoE at 20% approximately.
Risk - risk management is key in trading and investment. At this stage in the market cycle, an SIP or STP (systematic trading plan) approach helps in mitigating risk. Stop Loss could be midpoint of 30 August 2021 candle i.e. approx. 550. That is roughly 25% from CMP and would give the stock enough room to move for positional trades.
Disclaimer: I am not a registered investment advisor. Please consult your investment advisor for any buy/sell decisions. This post is shared with the objective of peer group learning and comments from experts.
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