ICICIdirect.com's report on Raymond
The share price of Raymond, a leading garment maker, has been in a short term rising trend since September 2013 lows of Rs 176. The stock price doubled from its September 2013 lows to early January 2014 (Rs 176-308) before going in to a consolidation over past couple of months. Pictorially, the entire consolidation over past two months has resulted in a triangular pattern which marks the intermediate counter trend correction. The price action in this weeks trade suggest the stock breaking out of this consolidation pattern signalling an end of two month corrective phase and resumption of short term up trend
Overall volumes have been consistently rising in tandem with the up move in prices while intermediate corrections have been a low volume affair. Such volume behaviour corroborates the Dow Theory principle, which states that volumes should rise in the direction of the primary trend and highlights an overall bullish structure
The price breakout from the continuation triangle pattern offers fresh entry opportunity to ride the next up leg. The price projection based on equality of width of the pattern (308-257 = 50) projects upside towards Rs 325 (275+50) projected from Wednesday's low (275)
Strategy: "Buy Raymond in the range of Rs 285.00-278.00 for a target of Rs 325.00 with a stop loss below Rs 265.00 on a closing basis," says ICICIdirect.com research report.
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