Aban offshore has broken out of a Rectangular Pattern on Friday with high volumes & looks set for a target of 500-506 levels.
Rectangular Pattern is a continuation pattern & it took 3 months for the pattern to form & a breakout was seen on friday, October 28th 2011.
8th November 2011, would be the Q2 results of ABAN. Q1 results were bad, the Company posted a net loss of Rs. 21 Crores compared to a net profit of Rs. 24 Crores (Q4 results of FY'11)
CMP: 425
Target: 419+(419-332)=506.
Initial Stop Loss: Closing below 419.
Time Frame: Maximum 3 months.
Indicators: MACD has turned into buy mode. RSI is above 70 indicating strong strength in the movement.
Futures - On 28th Oct 2011, Friday the price increased 5% & with Increase in Price, there was addition in Open Interest too - Indicating built up of Longs.
Update 2011-Nov-18: On Nov 15th 2011, the stock moved below 419 & hence the pattern got invalidated & the Stop loss also got hit.
Rectangular Pattern is a continuation pattern & it took 3 months for the pattern to form & a breakout was seen on friday, October 28th 2011.
8th November 2011, would be the Q2 results of ABAN. Q1 results were bad, the Company posted a net loss of Rs. 21 Crores compared to a net profit of Rs. 24 Crores (Q4 results of FY'11)
Daily Chart of Aban Offshore
CMP: 425
Target: 419+(419-332)=506.
Initial Stop Loss: Closing below 419.
Time Frame: Maximum 3 months.
Indicators: MACD has turned into buy mode. RSI is above 70 indicating strong strength in the movement.
Futures - On 28th Oct 2011, Friday the price increased 5% & with Increase in Price, there was addition in Open Interest too - Indicating built up of Longs.
Update 2011-Nov-18: On Nov 15th 2011, the stock moved below 419 & hence the pattern got invalidated & the Stop loss also got hit.
May The Trades Be On Your Side
Happy Trading / Investing. Would be glad to receive comments from all on the views expressed.
Keep a Stop Loss in each trade you Initiate.
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