UPL LTD - BULLISH BREAKOUT - STRONG UPMOVE POSSIBLE - LONG TERM
Hi Folks,
I have been studying this sector(agro chemical) for a while. This sector can outplay operational deleverage since sitting on capex since few years. Recently, they did a rights to lessen their debt to save interest on borrowings. UPL is also a market leader in agro chemicals sector with presence across the globe with an array of topline products.
Quarterly results are improving indicating they might be going towards the capacity utilisation they built on capex. Still early days but technically risk-reward is highly favourable.
Elliott Wave Analysis
1. Larger 5 wave is playing out on weekly time frame.
2. 2 of 5 seems to be getting over after decent retracement. Good time and price correction happened.
3. A strong weekly candle above 30 WEMA is visible, more follow ups needed with huge daily candles to signify 3 wave up.
4.Low of 2 can act as an invalidation point for this whole structure.
5. Volumes and delivery are very high near the recent bottom indicating smart money interested in accumulation here.
Happy Trading! Cheers!!
Not a trading recommendation, please do your own due diligence.
I have been studying this sector(agro chemical) for a while. This sector can outplay operational deleverage since sitting on capex since few years. Recently, they did a rights to lessen their debt to save interest on borrowings. UPL is also a market leader in agro chemicals sector with presence across the globe with an array of topline products.
Quarterly results are improving indicating they might be going towards the capacity utilisation they built on capex. Still early days but technically risk-reward is highly favourable.
Elliott Wave Analysis
1. Larger 5 wave is playing out on weekly time frame.
2. 2 of 5 seems to be getting over after decent retracement. Good time and price correction happened.
3. A strong weekly candle above 30 WEMA is visible, more follow ups needed with huge daily candles to signify 3 wave up.
4.Low of 2 can act as an invalidation point for this whole structure.
5. Volumes and delivery are very high near the recent bottom indicating smart money interested in accumulation here.
Happy Trading! Cheers!!
Not a trading recommendation, please do your own due diligence.