BHARAT DYNAMICS-After 68% return in 24 days time for correction.

This script had been moving upwards in the channel at a decent pace forming an Ascending Triangle in the process. Last month once the Galwan valley fight started, that is when this defense stock gave a breakout of the Ascending Triangle and started racing on.

Since the breakout it has given a staggering 68% returns in 24 days.

The stock also continued in the broader channel and I thought the correction started day before but today's candle just hit the last nail in the coffin by breaking out and hitting resistance. On any other day, since this stock broke out of a channel, one would have expected it to race further but..

Nifty being at the peak is ready for some correction from next week (I've uploaded my view on the Nifty chart) and so will this stock.

The blue dotted lines are the support levels where you can book profits if you go short or if you think long term then would like to add to your portfolio.
Comment: I was WRONG !!!
Trade closed manually: After my error by 1 day's candle, the pullback took place as expected. The shorting is complete with today's candle rising again.
Comment: A good time for entry at current levels. we can see a base forming up here.


is BDL looking good for long term?
+1 Reply
CautiousChartist Kissass9970
@Kissass9970, Definitely Yes for Long term. However, be cautious while entering and spread it in 3-4 tranches since the stock has rocketed about 79% in the past month. Try to accumulate between 400-380. if it breaks 380, you could get it even cheaper. If it crosses 455 then you may have to play the chase and catch game.
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