Avadh Sugar Energy heading towards 8000+ levels (Long Term)As the prices of commodities are soaring high due to increasing demand and inflation, Sugar & Ethanol prices will rise as well leading to improved operating profit margins.
This sector is capital intensive, only the existing players will be immensely benefitted due to ethanol blending.
Price to BV & PE is low compared to its peers.
Changes in govt. policies can impact this sector heavily, one should keep in mind. Still tailwind is there due to ethanol blending and it will be there up to 2030 at least.
Technically price is forming a cup with handle pattern with a technical target of 1300, which can be achieved in medium term.
Targets are highlighted according to your investment horizon.
As per wave theory, wave 2 is complete now after forming a complex WXY double correction pattern. Now we are at the initiation of a larger degree wave 3, which can lead towards 8200 level in 2.5 to 3 years creating a ROI of more than 1100% from CMP.
Invest only if you have strong conviction in this sector and this company and do your own due diligence before taking any action.
Peace !!
AVADHSUGAR trade ideas
Great swing opportunity in Avadh Sugar A nice cup with handle pattern is in play.
It is best to buy at the bottom of the handle to minimize the drawdown and maximize the reward to risk ratio.
The broader view shows, the price is moving in an ascending channel pattern.
Currently price is ranging near 600 which is also at 200 days MA & bottom line of ascending channel.
Strong bullish divergences observed across multiple indicators.
Fundamentally company has reduced debt aggressively, price is below intrinsic value & it's Graham Number is 899.
Capacity expansion along with Repo rate cuts will immensely help boost it's overall profitability.
Ethanol blending program will give tail winds.
DIIs have increased their stake whereas FIIs have increased aggressively since last 3 quarters.
Best to buy at CMP with a target of 1315 (115% ROI in medium term) with stop loss below 555.
A good 12.43 R:R trade opportunity.
Do your own due diligence before taking any action.
Peace!!
AVADHSUGARNSE:AVADHSUGAR
One Can Enter Now ! Or Wait for Retest of the Trendline (BO) Or wait For better R:R ratio
Note :
1.One Can Go long with a Strict SL below the Trendline or Swing Low of Daily Candle.
2. Close, should be good and Clean.
3. R:R ratio should be 1 :2 minimum
4. Plan as per your RISK appetite
Disclaimer : You are responsible for your Profits and loss, Shared for Educational purpose
#AVADHSUGAR #RAJSREESUG #UGARSUGAR #MAWANASUG #KCPSUGIND #NIFTY
#AVADHSUGAR
NSE:AVADHSUGAR
CMP: 544
TP: 684
SL: 494
TF: <6m
RR > 2.8 times
Return 25%
Factors:
BULLISH WEDGE BREAKOUT
Trend Following
Rising Volume with rising Prices.
Flag pattern breakout.
Pennant Pattern Breakout with Bullish Candle.
Retest Successful.
Higher Highs & Higher Lows.
Broken above RESISTANCE levels
Trading at SUPPORT levels
Earnings are strong.
Bullish Wedge Breakout
Risk Return Ratio is healthy.
And
Rising from Double Bottom Pattern to Flag Pattern forming.
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With 💚 from Rachit Sethia
Avadh Sugar - Fibonacci and Darvas box - for study purpose onlyI have drawn Fibonacci retracement from 154.45 to 394.45.
I have also drawn a Darvas box from Fibonacci retracement level of 1.618 to 1
When in the box, it had a support at Fibonacci retracement level 1 => 394.45 and resistance is at Fibonacci retracement level 1.618 => 542.75
There was a price volume action when the price was entering as well as exiting the Darvas box.
I believe the stock has given a break-out from this box and might reach Fibonacci retracement level of 2 => 634.45 in near term with support at Fibonacci retracement level 1.618 => 542.75 and second support at 1.414 => 493.80
Current market price is 593.35
Please note that I am learning these things, and this for study purpose only.
AVADHSUGAR BREAKOUTAfter a strong uptrend, NSE:AVADHSUGAR formed and flag pole pattern from which it broke out today. Closing is strong and volume looks okay.
Enter 30% of position if it opens gap up and then enter the rest after a dip/retrace.
Stock has consolidated for quite some time so it won't fly in 1 week. Buy and hold for 1-2 months.
Price can again enter into consolidation mode after giving 5-10% move. Holding with patience is key.
Follow strict risk management. HAPPY TRADING!