Bull markets typically pass through cycles of consolidation and correction. Gabriel India Ltd chart is currently experiencing one such consolidation.
When the rallies are larger, the consolidation periods also last long. Gabriel had broken out of trading range earlier in May 2014. This is when major Indices in India experienced sudden rally after Modi Govt. elected to power. As you can see from Gabriel chart enclosed it also broke out of trading range to reach to price of 106 in a period of 9 months. It posted life time high of 106.75 in Jan 2015.
After this, the next consolidation phase started. Chart is trading in a range since then. Its been more than a year now and the trading range is getting narrower. We do not know how long the consolidation will last. However, an upward breakout of this consolidation can start next phase of rally in Gabriel.
This anticipated breakout can form a 'Up Flag' pattern. Target for up flag is equal to range of earlier rally known as 'pole' which can be seen from weekly chart enclosed with this article. In this case pole started on 30 Aug 13 and formation ended on 30 Jan 15. The range for this pole is 90 points. Add 90 points to base price of Flag. The base of Flag in this case is near 75. So, one can expect Gabriel, if breaks out of this consolidation, to gun for a target of 165.
If you are a medium term trader Gabriel can be a good stuff to be in your portfolio. Fundamentally stock is placed in a good position with no debts, increasing sales and profit margins.
When the rallies are larger, the consolidation periods also last long. Gabriel had broken out of trading range earlier in May 2014. This is when major Indices in India experienced sudden rally after Modi Govt. elected to power. As you can see from Gabriel chart enclosed it also broke out of trading range to reach to price of 106 in a period of 9 months. It posted life time high of 106.75 in Jan 2015.
After this, the next consolidation phase started. Chart is trading in a range since then. Its been more than a year now and the trading range is getting narrower. We do not know how long the consolidation will last. However, an upward breakout of this consolidation can start next phase of rally in Gabriel.
This anticipated breakout can form a 'Up Flag' pattern. Target for up flag is equal to range of earlier rally known as 'pole' which can be seen from weekly chart enclosed with this article. In this case pole started on 30 Aug 13 and formation ended on 30 Jan 15. The range for this pole is 90 points. Add 90 points to base price of Flag. The base of Flag in this case is near 75. So, one can expect Gabriel, if breaks out of this consolidation, to gun for a target of 165.
If you are a medium term trader Gabriel can be a good stuff to be in your portfolio. Fundamentally stock is placed in a good position with no debts, increasing sales and profit margins.
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