One of my dear friends Mr. Ali Uzzama informed me about the sudden surge in the ABGSHIP counter and asked for my opinion, so all credit for pointing this out goes to him.
After studying the charts it is very clear that there was a breakout from the neckline of an Inverted Head and Shoulders Pattern. A similar Pattern occurred in the month of June but the stock could not close above the 38.2% Fibonacci Levels and retraced from the levels of 276.8 to make a new low of 226.1 in August.
But this time its different story, ABGSHIP has moved above its 200DMA of 253.6 also breaking a short term declining trend line and closing above it and all this with above average volumes.
All this is accompanied by the Stock being very close to its 38.2% Fibonacci Retracement and the RSI not yet oversold which is all looking good for the script.
My advise to those holding the stock is to continue holding it for a target of 300 and those who wish to buy into the counter should buy above 272 with a Stop Loss of 250 for a first target of 290 and then 310.
The Chart says it all:
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