FRO | Bullish undervalued - Long at Fib level 3

BULLISH INDICATOR (Sep 04) [Daily Chart]

1. Bullish HH and HLs trend is seen and next HL is expected with current price at 17.48.

2. The Heikin Ashi candles are showing a natural pull back in bearish direction but after testing the Fib level 31.8%, price-action is expected to turn in bullish direction.

3. There is a support at Fib level 31.8% @ 17.22, which is expected to play to allow bullish trend to proceed.

4. The bullish trendline is intact and third touch point will meet price action at Fib level 31.8% @ 17.22.

5. The price-action was in a CONSOLIDATION phase from June 2016 till Jan 2023. In 2023 the price-action has broken off in bullish direction from the rectangular box pattern.

6. No ABCD bearish harmonic pattern noticed.

7. The price-action is above 200 EMA, which is a good sign. If it crosses 200-EMA in downwards direction then we shall prepare to liquidate our positions.

BEARISH INDICATOR (Sep 04) [Daily Chart]

1. The recent bullish trend has not broken the pervious HH of Mar 1st 2023.

2. The Heikin Ashi candles are showing a natural pull back and next LH and LL could be seen but chances are less.

3. There is a bearish divergence noticed on daily timeframe, which needs to be watched.



PREDICTIONS
1. There are more bullish indications than the bearish indications.

2. The stock is available at a very good price with P/E @ 5.4. I will recommend waiting till price traced to 17.22 till Fib 31.8% level before buying.

3. There is a bearish divergence but if the price drops below 16.23 and crosses 200-EMA downwards then bearish reversal will be confirmed.

BIAS 1 = LONG - PLAN A (Pending Buy Limit @ 17.22 Market)

BIAS 2 = SHORT - PLAN B, (If you already hold FRO then plan to sell them when price crossed 14.43 downwards)

TRADE PLAN
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PLAN A: Long (Buy Limit)

EN1: 17.22 (Buy Limit)
SL1: 14.43
TP1: 17.24 - RR: 1.45