Rama Steel Tubes - Thundering like Rama's Bow
Rama Steel Tubes - The price reached the high of 15.37 on Jan 2023 - Approx 609 days ago. Since then it fell -33% from its ATH and has been painfully going sideways between 10 and 16 forming an upward Parallel Channel - testing the patience of every investor. During mid of 2023, FIIs significantly increased stake in this counter, yet it didn't budge
Today the price Locked itself in 20% UC back-to-back for 2 consecutive days, and stood alone as the lone warrior among majority of Metal related stocks
Here is the Chart of Nifty Metal Index -
Nifty Metal Index fell 0.5% today and has been continually falling -10% since beginning of June 2024
So, why did Rama Steel Blast today despite Majority Metal stocks fell and Index also fell?? The answer lies within the Stock's Chart itself
On the Quarterly chart - the price gave approx. 7,050% returns in 1,036 days. Any investor would be Crazy to expect immediate bounce back after running a marathon like this...
The consolidation started on Jan 2023 and the price fell just a meagre -33% from previous ATH, but to clearly show Bullish Continuation - the price formed an Upward Parallel Channel for nearly 1 year 9 months which is a clear indication to NOT TO WORRY
But many investors don't understand the previous returns of 7000%, and lose patience waiting for just 1.5 years and when the price blasted 20% UC in 2 days many of them booked their profits / exited completely...
How many times have we heard the statement....
"Whenever I invest the price falls....
Whenever I exit the Price Blasts..."
This situation is no exception to this adage, for the primary reason that investors don't understand why they invest and neither understand why they sell off....
Clues:
1. On the Monthly chart, the August candle ended right on Parallel Channel bottom as Support
2. Also, the Aug candle turned to be a Gravestone Doji pattern / inverted Hammer pattern at the bottom which is clear indication of Bullish reversal
3. The long consolidation for more than 1.9 years built enough pressure which got blasted in the past 2 days
This is not a Target, but rather the journey is yet to start. The parallel Channel is yet to be broken and once broken it would hit a Target of 25
But it still won't be a cake-walk, once the Parallel Channel top is tested, the resistance would for 1 last time push the price down to a support of 15.4 and then blast upwards
Keep Holding for multibagger returns. Learn how the market behaves and build your patience and Conviction....
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