[Premium] Trade Of The Week

JC Parets
April 18, 2021

This week we're looking at a long setup in the Consumer Goods sector. We covered this specific trade idea in January and post the achievement of the target, it seems like a good time to update the levels.

DCM Shriram had a great week breaking out of its two-year base with a strong bullish candlestick! Three things we love here. One, there is a big base breakout that has come at a time when the market is choppy. Two, the strong bullish candlestick alludes to the strength in the price move. Three, the indicator is settled in the bullish momentum zone. All good signs to see in a particular stock.

On a relative basis too, DCM Shriram is gaining from strength to strength every week.

We are bullish above the risk management level of 638 with a target near 926.

Click on chart to enlarge view.

When the market is in a choppy phase, moves such as the one seen in DCM Shriram standout out from the perspective of risk management as well strength. Once relative strength adds its weight to the evidence, then the balance tilts in favour of the stock.

Thanks for reading and please let us know if you have any questions.

And if you're a Premium Member, be sure to check out our other weekly post, "Three Charts For The Week Ahead."

Allstarcharts Team

Filed Under: