Ashish Chaturmohta
On the long-term monthly chart, Colgate Palmolive has formed a bullish cup and handle pattern. The stock has been range bound for the past ten months between Rs 1,180-1,020 levels and is also seeing some bit of consolidation at all-time highs after rounding formation.
For the last three weeks, the stock has been moving in a sideways direction but with a positive bias. On Monday, the stock formed a long bullish candlestick pattern with good volumes suggesting that the price has resumed its uptrend.
The price has given a breakout from Bollinger bands. Now, with the expansion of bands suggest that the trend is likely to continue in direction of the breakout.
MACD has given a positive crossover with its average trending above the neutral level of zero suggesting resumption of the uptrend. Thus, the stock can be bought at current level and on dips to Rs 1,110 with a stop loss below Rs 1,080 and a target of Rs 1,250 levels.
Disclaimer: The author is Head Technical and Derivatives, Sanctum Wealth Management. 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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