Divis Lab was trading near 1350 in Sep 16. The stock is available near 700 while writing this article. No one is willing to touch it even at this level.
Lets try to understand whether Divis Lab is an attractive buy at this level.
Here is quarterly (Yes...one candle per quarter...though little long term, its worth discussing here) chart of Divis Lab
The stock is trading near a substantial support area. Biggies would want to buy at this level.
I am not saying the stock will start moving up right away from this level. The level might be tested couple of times. The stock may get into sideways trend for some time.
If you have patience and you are ready to wait for some ( a year or so) time there is an opportunity to earn 50% returns here.
Closer look:
If you look a little closer on the basis of daily and weekly chart, you will find that the chart structure is becoming flattish indicating slow and steady buying at current levels. The buying area is between 600 and 700. So may want to average between this price.
You can look to book first profit near 900-930 and later near 1100-1150
Have your risk management in place and you have a nice trade ready to be served.
Weekly Chart:
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