Stock of the week - Siemens Ltd For Target Rs.2564 By GEPL Capital
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SIEMENS
Observation
* SIEMENS on the monthly time frame has been forming a higher high higher low pattern since July 2020, indicating that the long term trend of the stock remains bullish.
* On the weekly time frame, we can see that the prices have been moving higher for the past 2 weeks after breaking out of a ‘Pennant’ pattern. This up move is backed by rising volume, indicating participation in the up move.
* The Bollinger bands plotted on the weekly time frame can be seen expanding after a squeeze as the prices move higher, indicating expanding volatility on the positive side as the prices move higher.
* On the indicator front the RSI plotted in the weekly chart has been sustaining above the 50 mark since September 2020, currently it can be seen moving higher level indicating presence of bullish momentum in the stock for the medium to long term.
* Going ahead the key resistance level to watch out for is 2383 (78.6% extension level of the rise from 1120-1967 projected from 1717) followed by 2564 (100% extension level of the rise from 1120-1967 projected from 1717).
* The 2140 (Multiple touch point level) will act as a red flag level, followed by 1920 (recent swing low).
Inference & Expectations
* SIEMENS has been in a long term bullish phase.
* On the medium term charts the prices have moved out of a bullish continuation pattern, in the week that passed by the prices breached above the previous swing high and tested a fresh Life Time High.
* We expect the bullish momentum to take the prices higher towards the 2383 mark immediately.
* If the level of 2383 is breached we can expect the prices to move higher towards the 2564 mark.
* Our bullish view will be negated if the prices breach below the 2140 mark beyond which we can expect the prices to move lower towards the 1920 levels.
* One can Buy SIEMENS at current levels for the target of 2383 and 2564 levels with a strict stop loss of 2140 on closing basis.
Buy Siemens Ltd LTP 2244.75 TGT 2564 SL 2140
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