A Good Contender for Short Term

One more attractive stock is here, this is Aditya Birla Money. I have been keeping this stock on the radar since quite some time.

Aditya Birla money belongs to the broking industry that has a very bright future.

For the last few years, it has been in a consolidation phase.

We have seen a fall of 90% in this stock from the high of 2017 (164.90). Every consolidation has its own importance. It may be the accumulation or distribution phase. This phase can be distinguished by the volume pattern. As we can see in this stock the volumes have been amazing in the 2nd half of the phase. The large buy volumes are the indication that some smart investor has been buying the stock in large quantity in this phase. As we can see every time the price is rising the volumes are also rising. 2nd thing that is confirming this accumulation phase is rising OBV.

This consolidation has been unfolded in an Inverted Head and Shoulder Pattern that is itself a bullish reversal pattern. But more interesting thing is that this pattern is a mirror of smart money buying behavior. So the understanding of chart patterns is a must to know about the phases of th market.

This week we are seeing a nice breakout of the neckline of the head and shoulder pattern and its resistance of 52.50 with high volumes.

MACD also has strong momentum as it witnessed a bullish crossover.

I am expecting 75 in this stock in the medium-term and 100 in short term.

A good stop loss will be around 38. Those who don't want to take more risk can place their Stop Loss at 100EMA.

This my analysis your analysis may be different from mine so before investing you can do your own analysis.