Buy ESS DEE Aluminium; target of Rs 810: Way2Wealth

Way2Wealth's report on ESS DEE Aluminium

"Ess Dee Aluminium has provided a good breakout form the symmetrical triangular pattern which has a minimum target of 810 levels i.e. the equality target. On the lower side it has now a crucial support pegged at 580 levels as it should not overlap its previous swing high now. The volumes chart also provided a breakout in yesterday's session, so this confirms the price breakout. The stock is also trading well above its short term and medium term moving averages i.e. 20DMA and 40DEMA. The MACD has come into buy mode both on daily and weekly charts which are a further confirmation of the up move. Based on these parameters, we believe that the probability of an upside is quite high," says Way2Wealth research report.

Trading Strategy:

Buy Ess Dee Aluminium 50 percent at CMP of Rs 629 and 50 percent on dips near Rs 610 for the target price of Rs 810 with a stop loss of Rs 557.90Risk: Reward (1) = 1: 2.54Risk: Reward (2) = 1:3.09Risk: 629 - 580 = 71.10Reward: = 810 - 629 = 181Risk: 619.50 (average of 610 and 629) - 557.90 = 61.60Reward: 810 - 619.50 (average of 610 and 629) = 190.50

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