Maruti 50% upside (target = 11,000)

Date: 28 Dec 2020

Maruti Suzuki (CMP: 7,483)

Chart Time Frame: Weekly Chart

a) Maruti has formed an Inverse Head and Shoulder pattern on a weekly basis.

b) Stock price is sustaining above all its 'Weekly Exponential Moving Averages' - 10 WMA, 20 WMA, 50 WMA & 200 WMA.

c) The average Volume has increased more than double since the formation of Inverse H&A started taking shape.

d) During the left shoulder formation RSI was little over 30 level of oversold zone. However, during the right shoulder formation the RSI was well above 50 level indicating a strong bullish level formation.

With such a strong setup it is a perfect time to go long on Maruti Suzuki for 2 years. You can get 50% return in Maruti during this period.

Target = 11,000.
Stop Loss = 6,000.