McLeod Russel India Limited : A well-established uptrend
July 17, 2012 at 12:18 pm
By
Entry price | Target | Stop-loss | Potential |
---|
₹310.9 |
₹0 |
₹281 |
-100% |
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Mcleod Russel is the world's largest tea producer. The security is trading in a bullish trend and several arguments argue for the continuation of this trend.
From a fundamental viewpoint, the company is strong. The Thomson Reuters consensus revised regularly upward EPS estimates of the company for the current year. The great business predictability emphasize the quality of this investment in the mid-term. Sales are up +18.2% for one year. Debt is decreasing rapidly and the leverage is reducing at 0.42x.
From a technical viewpoint, the security is trading in a bullish trend in the short and long term. Increasing moving averages let think there will be no reversal in the coming trading sessions. This growth should help to break soon the INR 320 resistance and the slant. This would be a strong bullish signal.
Thanks to these good indicators, it seems relevant to take a long position in McLeod Russel at the current price. The target price is INR 370. A stop loss will be fixed under the INR 295 support because a breakdown of this level would damage technical pattern.
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