Week 9 strategy 1: AB=CD MEBLMEBL has been in a strong uptrend since June 22, 2023, when it was priced at Rs. 81.84. This bullish trend has continued, and as of February 2024, the stock has begun to form an AB=CD pattern, which is currently incomplete. Based on technical analysis, the completion of this pattern is projected around Rs. 273.
Trade Recommendation:
Action: Instant Buy
Stop Loss: Rs. 206
Target Price: Rs. 273
Rationale:
The ongoing uptrend and the formation of the AB=CD pattern suggest that the stock has significant upward momentum. The target price of Rs. 273 is based on the expected completion of the AB=CD pattern. However, traders should be aware that upon reaching this level, the stock may encounter a potential reversal zone.
Trading Strategy:
Enter the trade at the current price around Rs. 241.
Set a stop loss at Rs. 206 to manage downside risk.
Aim for the target price of Rs. 273, where the pattern completion is anticipated.
