Case Study Welspun corp
As you can see in the chart a rounding pattern is formed and resistance broken. After that it went up and again came down to test the earlier resistance level and bounced back sharply.
This is perfect example of rounding bottom pattern breakout. In simple terms the company was not doing well or some deal did not go through and the stock started falling down. Found support at lower levels and consolidated.
Now the innermost persons or the insiders got info that some positive thing is going to happen in the company and the stock starts moving up slowly.
By the time the news is confirmed by the insiders it would complete the rounding bottom pattern and move up.
If the news is false it will simply go down. So it consolidates near the top of rounding pattern and during this time it tests the earlier resistance levels.
Once the news is confirmed it starts zooming.
Expect the same to happen in the case of #WELCORP. The higher volumes we see on the left side are during the lower levels and before the beginning of the rounding bottom pattern.
As per the charts the targets would be 234 and 245, closing price is 211.7. Stoploss on closing basis would be 204.
Depending on the news or event it could go much higher also.
Happy swing trading.
❮
❯
