With two sharp cut on the PIVIOT point and consolidation makes stock unstoppable - if the result // explanation management and order book ..
when the pivot expand - stock want to rest / consolidate / make some correction / shakeup and then with the result and order book buyer understand the value and fwd earning without noise and they become super power.
understanding the correction is the key factor here .
why stock show two double cut - have no idea.
In Monthly the RSI RECYCLE and slowly move fwd without noise .
The observation was when RSI recycle from high BUT dont go below 70 and then start upward it will take a big ride.
recycle from high - stable at 70-72-75 then move towards- 86
Having said that weekly the RSI restage and took HBL from 116 to 650 - keep the low at 73/
If that transfer to MONYHLY - will see a good ride.
Always Flat base is rewarding price structure and required lot of patience's .
Typically its the early formation stage of a stage -2.
Those who play stage-2 they enjoy the formation while for a common and contraction breakout trader /momentum ,its a kill bill .
Because every time it will give a feeling to be breakout.
The breakout determined by at least 10/15 % move from the idle position with a double bottom.
Page-2
Flat base goes neck to neck price with a outstanding time approx - 6/7 weeks.
also very carefully stage-2 analyst monitor it should correct 10-20% . which give a invalid position .
(894 - 744) / 8.9 = ?/
A prior uptrend of 30% or more: This is the initial strong move that leads into the consolidation phase.
Sideways consolidation within a tight range: The stock’s price moves sideways, typically staying within a 15% range from the highest to lowest points.
Theoretically
what price #baluforge making if it break Flat base. 1) is earnings is good - Yes 2) Is qtr result is good - Yes 3) is news behind Balu with jv - yes 4) Is Balu product match with country vision - Yes 5) Is balu product match with GOVT project - yes.
Is balu is over hype with time and Tired at 894 - Yes.
is market Panic and make panic nervous investor at 890 - yes
Termination comes as a cost ..
which means company get rid of non profit business / non performing unit
want to more focus on the profit business and consolidate
why so much CASH they are holding with them ??
they ready for next big move ...
why they pile up so much cash ??
If you see inventory then they are clearing their house - not fill-up with the inventory . which means they are shifting to new segment.