Is Zee Ready to Zoom?

JC Parets
September 24, 2021

Congratulations to those holding positions in Zee Entertainment, for you, have been rewarded! Well, at least for now.

Zee has been notoriously stubborn for remaining sideways for all of seventeen months now. That's a long time, considering several stocks have grown two-fold, three-fold at the least.

But Zee has also been a part of a sector that has consistently underperformed the market.

But have things changed with the move we saw in Zee over the past two weeks?

Maybe...

Let's take a look at the chart and see what we have at our hands.

Click on the chart to zoom in.

Well, what is it that grabs your attention first? The price breakout? The base breakout? The indicator in bullish momentum?

Which one is it??

All the above is the answer then! The price broke out above its 38.2% Fibonacci retracement, taking out the 2020 highs. At the same time, we notice that there has been a two-year base breakout. This, at a time when the indicator decided to pay a visit to the bullish momentum territory after a five-year hiatus.

So the momentum is definitely there. Just how long will it last is the question.

We are, however, bullish as long as the price trades above the risk management level of 307. Below this, and we're not interested! The target to track would be 426.

Bursts of momentum come through after prolonged periods of sideways moves. What is important to observe is if the price is able to sustain at the new highs and if the momentum continues to support the price. If you notice that the move seems temporary and that the price seems to be giving away like quicksand, then it's best to avoid getting stuck. The more you struggle to get out (averaging) the deeper the mess.

Keep in mind, every position you take must be in line with your risk profile. Risk management is the only savior here!

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