Oct 9, 2013

Heromotocorp breaking out of a bullish triangle pattern


          Heromotocorp is continuing with its uptrend,though it was stuck in a trading range for the past few days.In today's trading session , it attempted to break out of this range with good volumes.This trading range led to the formation of  a bullish triangle pattern on daily chart.

 On lower side, the stock is consistently taking support on the trendline supported by some short-covering.Short-covering is likely to continue in coming days also.In today's session again , it took support at the trendline after opening lower and gained strength throughout the day and managed to close above the upper trendline ( see black oval on chart )

         Technical oscillators like RSI ,slow stochastic s are already in buy mode and momentum oscillator is also in positive territory.
          Seeing all the scenario, Heromotocorp is expected to continue this uptrend in coming days. An upside of 8-10% can not be ruled out in a week or so. So the stock can be bought at the current market price or on decline towards 2000-2010 for the target of Rs 2232 as suggested by the triangle pattern.Stoploss for the trade can be placed safely around 1980-1990 ( spot levels ).
       
          

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