What is MPS Limited?
MPS Limited is a publishing services company. The company is well positioned to become leader in digital publishing. You can find more about the company here.
Reading stock price History
As you can see in the weekly chart above: MPS Limited broke out above 77-78 in Nov 2012. It then did nothing for year - just traded sideways. It's called Bullish consolidation and then stock took off in Nov 2013 and rallied from levels of 100 to levels of 1000 i.e. 10x move over next 15 months.
What Next for the stock?
Now, you must be wondering - how a bullish case can be made for a stock that has already rallied 10x. Well if you read history of trends - generally stocks don't terminate trend just because they have rallied too much. What matters - what stock does post that rally.
Here's what stock is doing right now - MPS stock daily chart
As you can see in the chart above: stock is once again building a base around 800 for next move. Now considering stock has moved up 10x between Oct 2013 and Jan 2015 - it's difficult to imagine how long the current consolidation can last but as long as stock maintains a bullish structure i.e. support of 800, one can be bullish on the stock. If one has to formulate an investment strategy on the stock: then one can say
Go Long between 800 and 820
Review the chart if stock slips below 775 - Can Exit
Risk: Stock can do nothing for next 4-6 months....time correction
In Short Term: stock can rally back to 1050 but Stock is Long Term Hold as long as Bullish structure intact
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1. 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.
2. I am not a registered investment advisor. My views are strictly based on my understanding of chart. Please always do your own due diligence before making any investment/trade.