We have been bullish on this stock since start
of 2016. Atul ltd has managed to continue its out performance irrespective of
market conditions. Even when selling was witnessed in domestic market, this
stock managed to protect its grounds. Today this stock has made its all-time
high near 3415 levels.
We published about Atul ltd in August, 2016
and predicted a possibility of Multibagger returns. The stock gave almost 80%
from the levels given in just over two years.
We were able to predict this level using Time
Cycle, Elliott wave technique and Channels. Prices post completing wave (iv)
gave a break on the upside in the form of wave (v) precisely as expected.
Atul Limited weekly chart: (Anticipated as on 06th
of August, 2016)
Atul Limited weekly chart: (Happened as on 16th
October, 2018)
Elliott Wave analysis: Below is the research published on 6th
August 2016
On the above weekly chart we can see that
since 2011 prices are moving in impulsive fashion between the black channels.
We have picked up this stock as it looks to a wealth creator in the upcoming
years and exhibits great potential. Post
making a significant low in 2009 near the crucial channel support in the form
of wave [2]. Prices are rallying on upside in the form of wave [3] which has
given more than expected returns and the same can continue over coming years.
The internal structure of wave [3] suggest
that prices are rallying on upside within a narrow channel. Recently post the
completion of minor wave iii near the resistance, wave iv is completing its
course after which we can expected wave (v) of III of [3]. So still there is
lot of room to be covered over coming years.
We have applied time cycle of 110 weeks which has helped us capture the previous
pivot support zone and it is acting as a bottoming cycle. Now the recent low
was made near the cycle and so the trend should be positive from here on.
An important thing to notice is that 100 weeks moving average is working brilliantly
on the above chart and prices have respected the same. So as far as this is
intact it is better to stick to the ongoing trend and any pullback towards this
average will provide good buying opportunity.
In short, all the evidences end up with a
positive outlook for this stock. From here on minor dips can be seen as prices
are in wave (iv) which would provide good entering opportunities for this
stock. On upside, prices can rally towards the channel resistance as per the
path shown and we can expect the targets of 3100 levels in coming years.
“On upside, prices can rally towards the
channel resistance as per the path shown and we can expect the targets of 3100
levels in coming years.” BANG ON!
Happened: Atul Ltd moved precisely as expected completing
wave (iv) on downside and giving a break on upside in form of wave (v) making a
high near 3415 levels in today’s session.
Which are the next
Multibagger stocks that can give multifold returns like this over the coming
years even in such market conditions! For that you need get accesses to our “The
Multibagger research report” which will help you in creating your own
portfolio. Check here.
To know how to apply these studies and
identify such stocks which can help you give multifold return. You can attend
my training on Elliot wave, Neo Wave and Time Cycle to be conducted on
24th and 25th November, 2018 for the first time in
Ahmedabad. Know more.
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