Chalet Hotel A Value Investment for Short Term

Chalet Hotels

This stock had been in a consolidation phase for almost 1 yr since listing on the exchange in 2019.

In 2020 it has corrected almost 70%. After that correction stock has gone into a consolidation phase.

In this consolidation phase, we have observed some interesting development on the chart.

There are 4 phases of the market, Accumulation, Markup, Distribution, and Liquidation. Each phase has its significance in the market and each investor should know about it.

Currently, this stock is being trading at the accumulation phase. Last day it has moved out of the accumulation phase.

Now how to identify the accumulation phase and why we are considering it as an accumulation phase.

First look at the previous trend. It was a complete downtrend. After that downtrend, there is a consolidation phase. This consolidation phase formed into a channel pattern. In this phase look at the price action with the volumes.

Every time the market gains with high volumes and falls with very low volumes.

What this action indicates...?

This indicates that the stock is being accumulated in this phase. The smart investors informed investors and institutions are accumulating the stock at a lower level with good quantity. These smart investors may be the FII's or DII's or he may be a fundamentalist who always searches for the stock with good fundamentals and trading at a low price.

Always look for the stock that has been consolidating for a long time. This phase may take up to 1 or more than 1yr.

Now, look at the OBV that indicates the accumulation in the stock. The positive momentum in the OBV at the consolidation phase clearly indicates the stock is under accumulation phase.

Now the stock has moved out of this phase with the high volumes. For the last few days, the volumes have been continuously increasing with the increase in the price.

2 days earlier price moved above the 200MA that clearly indicates the reversal in the trend.

We are expecting 270 level for the next 4-5 months.