In weekly chart of Deepak Nitrite (DEEPAKNTR), we can clearly see a bullish falling wedge pattern. There had been a breakout followed by a retest. We got a positive close this week with a strong 8% weekly rise in a weak market.
As per classic TA, the size of the up move should be at least equal to the height of wedge formation. I have taken a conservative height and as per that, the stock could hit 2900+ in coming few weeks.
To top it all, we can also see a 5 wave rise from the bottom of the wedge during June end this year, followed by a red candle which also happens to be retest candle. If we go with this theory then we are in wave 3 (considering the previous five wave rise as wave 1). As per wave equality (1=3), it gives a minimum target of around 2700.
Either way, there seem to be some upside expected in the stock.
Disclaimer: Purpose of this post is to educate on technical analysis methodologies and not giving trading/investing advice.
