Thursday, December 21, 2017

Update - Wockhardt Pharma - Accumulation in progress?

You might recollect analysis of Wockhardt Pharma on October 9, 2017.
 The accumulation is usually followed by a sharp rise in price, as was mentioned in the analysis.

The stock is currently trading near 880. On Oct 9, at the time I wrote this analysis, the stock was trading near 635. Enjoy the gains.

Reproduced below is the article on Wockhardt Pharma written on Oct 9, 2017

Wockhardt Pharma - Accumulation in progress?

Wockhardt Pharma - Short Analysis

Wockhardt Pharma fall from its high in Apr 2015 is almost 80%. That took the stock to an attractive buying price with an 80% discount. Currently stock is trading near 635. Many would want to accumulate this share at current price. This is precisely what is seen on the chart. After a mega fall there is a consolidation on chart. This consolidation might be due to steady buying at currently levels. This buying may take the stock to higher levels.
The next hurdle is at around 830. If the stocks breaks this hurdle successfully, the next one is around 1250.  This might take couple of years.
I would trade this stock with a loss exit of around 540.

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