Jubilant Foodworks broke out in Nov 2014 to new high but since then has been trading quietly. This week move seems to indicate that stock is finally ready to make big move. The big question: Will this tradeable move happen?
Here's Jubilant Foodworks Weekly Chart
As you can see in the chart above: Jubilant Foodworks was stuck below 1380 between Sep 2012 and Nov 2014. It was only in the week of Nov 14 - that stock finally made a big move raising hope of big move ahead. But stock the went in for quiet consolidation and even slipped below 1380. Generally, such consolidation prepares the ground work for bigger move. This week big move confirms the theory and indicates that stock has completed its consolidation and is ready for the move. One can keep a stop loss at 1340 and hope for big move in next 4 months with target of 1850+.
Technical Analysis only tells you what's probable.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers