Hindustan Unilever (HINDUNILVR) has been underperforming against nifty since it took a hit on poor earnings. However, it now presents a low risk opportunity to go long on the stock.
The stock has been trading in a broad range of 2440-2700 levels for over a year now and is getting ready to bounce again from the lower level of the Range. The orange circles show the bottom formation in process, along with a visible RSI divergence.
The FMCG sector overall has been lagging behind as compared with the other sectors, and while there are many more opportunities in this sector, HINDUNILVR certainly seems to its hit its upper end of the range again and potentially make a new ATH.
My Stoploss on this trade would be 1.5 ATR (48 points), 1st Target would be anchored VWAP and resistance at 2568 while the 2nd target would be 2715 and final target as ATH above 2860-2900.
A good risk reward setup to pursue.
The stock has been trading in a broad range of 2440-2700 levels for over a year now and is getting ready to bounce again from the lower level of the Range. The orange circles show the bottom formation in process, along with a visible RSI divergence.
The FMCG sector overall has been lagging behind as compared with the other sectors, and while there are many more opportunities in this sector, HINDUNILVR certainly seems to its hit its upper end of the range again and potentially make a new ATH.
My Stoploss on this trade would be 1.5 ATR (48 points), 1st Target would be anchored VWAP and resistance at 2568 while the 2nd target would be 2715 and final target as ATH above 2860-2900.
A good risk reward setup to pursue.
Trade active:
After a long wait and continuously testing our patience, HINDUNILVR has finally given a good move and moved out of its range. Today it made an intraday high of 2563, close to our first target and it is expected to do well in the October series.
A break above 2568 will be key to move up quickly. Important to shift the SL up and make this a risk free trade. Use TSL as the stock moves up
A break above 2568 will be key to move up quickly. Important to shift the SL up and make this a risk free trade. Use TSL as the stock moves up
Trade active:
The stock Is consolidating at higher levels and should continue with that for another 2 days when it will announce its quarterly results.
Our First target is achieved. However, I expect higher levels and a new ATH soon.
Our First target is achieved. However, I expect higher levels and a new ATH soon.
Trade closed: target reached:
Apologies for the late update. Unfortunately, due to tough market conditions and global challenges, our TSL has been hit and thrown us out of the trade.
I am still bullish on this stock. I will repost once I find a fresh favourable entry again.
I am still bullish on this stock. I will repost once I find a fresh favourable entry again.