Cords Cable Good Time to Invest In

One more stock that has been showing very interesting development on Technical Chart.

I love to find that type of development in stocks technical charts.

This stock has been in a long downtrend since Nov 2017, in this year it made a high of 153.95 and never look back since then and made its low in March 2020 at 22.40.

For the last 2 years, it has been trying to make a base in a band of 22 to 54. 54 level is making a strong resistance for this stock as it was a support price for the stock a few years ago, currently, it is respecting this level as well.

Now come to this 2-years price range of 54-22.

As we can see this range has been unfolded in the form of an Inverted Head and Shoulder Pattern that is a bullish reversal pattern. This type of chart pattern appeared on the chart when the smart investor accumulates the stock with a good quantity. Many big institutions also try to accumulate the stock as the future prospects look good. The basis of their accumulation of fundamental and we can see their perception on the technical chart clearly.

The high buying volumes in this phase is the indication of their buying.

The rising OBV is the confirmation of accumulation.

The bullish crossover of MACD is the signal of change in the momentum of the price. MACD is the trend following indicator so it gives you the signal when the trend gets changed.

We will get the full confirmation when the price moves above the 54 levels and closed above this level. We should have a confirmation to enter into the stock. So we have to wait to get the confirmation.

On a technical basis, the Mid to Short term view on this stock looks positive and I am expecting at least 100 rupees in short term.

Fundamental as also getting improved for last few quarters.

Some fundamental points are as below.

1. Growth in Net Profit with increasing Profit Margin (QoQ)

2. Increasing Revenue every quarter for the past 2 quarters

3. Increasing profits every quarter for the past 2 quarters

4. Effectively using its capital to generate profit - RoCE improving in last 2 years

5. Effectively using Shareholders fund - Return on equity (ROE) improving since last 2 year

6. Efficient in managing Assets to generate Profits - ROA improving since last 2 year

7. Annual Net Profits improving for last 2 years 8. Book Value per share Improving for last 2 years (Book Value=109)

9. Stock is trading below its book value. The PB ratio is almost 0.5. Indicates undervalued stock.

10. Stock PE(6.12) below the sector PE (27)

So fundamentally stock is looking good.

You can do some more research on fundamentals.