Rohit Srivastava
In terms of price patterns, Ceat is forming an ‘Inverted Head & Shoulders’ pattern, which is a bullish pattern. The pattern is spanning over several weeks so the implication of the pattern breakout is likely to be significant.
Currently, the stock is forming right shoulder of the pattern. Hereon, it is expected to head towards the neckline and can eventually breakout on the upside. The risk-reward ratio at this level is very attractive to take a fresh long position.
We have a buy on the stock with target of Rs 1787 per share.
Disclaimer: The author is fund manager – PMS Sharekhan by BNP Paribas. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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