Is Grasim ready for big breakout move? Well, early signs are there
Here’s the Grasim Weekly chart
As you can see in the weekly chart above: Grasim seems to be breaking out above 2940: key resistance level where stock has stalled numerous times in last 3 years. Yesterday, the stock closed at 2970 and we need to see whether on weekly closing basis: the stock will close on above average volumes above 2940. Only when that happens: Grasim will qualify as decisive breakout.
What does this mean?
A great investment opportunity seems to be developing in the stock and if Grasim breaks out decisively – then it becomes strong buy on declines and over next 6-8 months will deliver superior returns. Here’s one such example – see Ultratech Cement daily chart below
When in Dec 2011-Jan 2012 – Ultratech Cement broke out above 1180-1200 – then there was lot of apprehension. I remember I did cover the stock when it broke out but there was lots of talk on how expensive the stock is and blah blah blah….see where the stock is 8 months down the road – UP 36% from 1200.
Grasim breakout above 2940 on weekly chart looks significant and one can buy at 2970 with closing stop loss of 5% below 2940 if the breakout sustains above 2940 on weekly basis. Exit this week only if stock fails to hold above 2940 on weekly closing basis. Having said that, Grasim is the stock to keep an eye on
Please do your own due diligence before trading