Friday, June 13, 2014

NTPC: long term breakout

If we remember, Sudarshan Sir had quoted NTPC in his post 'Pattern of the Month - March 14' posted on April 3rd. In that chart, we saw how it formed a classic bullish Head & Shoulders pattern and broke out of it. 

As i just revisited a medium to long term chart of the same, i got to see something amazing. You might have noticed it too. If not, have a look: image

This classic formation of a downward trading range over a period of more than 4 years, and successful breaking out of the same signals that a strong upmove is coming. Since NTPC is one of those less volatile heavyweights, we cant expect it to run like one of those high beta stocks, but at the same time, such stocks offer less risky and easier trades.

2 comments:

RHCF said...

same happened with Mcleod russel, and tata chemicals, but both break outs turned out to be fake

samir shah said...

Yes,I fully agree .Scrip has given a breakout with the healthy volumes.Medium term to long term technical indicators have given a fresh buy signal from oversold area.Level of 150 to 136 will act as a strong trend protective support.Investors can buy on every dips. Strong potential to outperform.