Thursday, June 15, 2017

Technical Analysis of Summit Power: Part 2 on 15 June 2017


This is no buy/sell recommendation - just a trial to see if Technical Analysis (works to an extent) in Dhaka Stock Exchange.

First let me evaluate the previous analysis done on 25 Nov 2016: http://imti77az.blogspot.com/2016/11/technical-analysis-of-summit-power-on.html

Forecast: Buy on the pull-back around 35 and expect 40-42.
Actual: It reversed from 35.1 and went up to 46+
It gave more than expected and then retraced.

After coming to a Low of 36.5, Summit broke upwards with volume. After pull-back (and re-test), it is "probably" getting ready for next move. We could expect another run from ~40 to 45-46 level at least (with SL @ 39.40)

A wedge pattern in longer time frame gives a target ~53 – it would be justified if Summit’s Q4 profit is ~BDT 800 Mn – then Annual EPS would be ~ 3.5 & 15 PE valuation would be ~53!

Safer to wait for a green candle . . . No risk no gain . . . 





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