Schneider Electric Short to Long Term View

Schneider Electric one of the attractive stocks for the long term.

This stock is looking attractive at the current phase of the stock.

I have been trading sideways for the last 2yr in the range of 116 to 60 after a long fall.

It made its high in 2015 after that it had been in a downtrend for almost 5 years.

Currently, this stock is being traded in the most attractive phase of the market that is an accumulation phase.

This is a phase where big institutions enter into stock for the long-term perspective and good earning estimation. The high volumes in this phase are evidence of institutional and smart investors buying.

A few days ago Plutus Wealth Management LLP has bought a 29 Lakhs share of this stock. This is the one example of Institutional Buying many institutions has already bought this stock.

Now come to the Technical Point of View.

At the bottom of the down-trend, it has formed a rounding bottom with the high buying volumes.

Rounding Bottom is a bullish reversal pattern.

Buying volumes are very high in this rounding bottom pattern. The rounding bottom pattern forms in the accumulation phase.

MACD has a bullish crossover.

OBV is rising. That signals the inflow of money into the stock.

After a long time, it has crossed the 200 EMA, this is the signal of change in the trend of the stock.

200EMA also indicates the change in the fundamentals of the company.

Fundamental Insight.

* Company has been in the loss for last 5 years. But for the last 2 quarters, the revenue has been increasing.

* The Net Profit improved for last 2 quarter

* Company with Zero Promoter Pledge

* FII / FPI or Institutions increasing their shareholding

*Rising Net Cash Flow and Cash from Operating activity

* Growth in Net Profit with increasing Profit Margin (QoQ)

I am expecting 180/230 in this stock.