Dear Readers,
A wonderful trading opportunity has materialised in the stock of United Phospherous Ltd.
Basis a quick google search- UPL Limited, formerly United Phosphorus Limited, is an Indian multinational company that manufactures and markets agrochemicals, industrial chemicals, chemical intermediates, and specialty chemicals, and also offers crop protection solutions.
Since India is predominantly an agricultural country, I believe UPL is placed as a key facilitator in further India's agricultural interests and is one of the leaders in this space.
Currently, UPL has corrected 10-12% from high of Rs. 600 and in doing so, it took triple support at the 200ema on hourly chart as shown below
A quick look on RSI (the momentum indictor) shows build up of bullish momentum in the way it hovers comfortably above the level of 30 which is a characteristic of a bullish stock.
So RSI behavior, EMA support and lastly the elliot wave count of the stock's unfolding impulse wave are reasons enough to believe the stock is well poised to trend upwards.
The fun part is, even if the analysis is negated by a breach of the 200 EMA on hourly chart, that is if the stock goes below 530, still, there is very little to lose, making this trade even more attractive. Willing to lose 1.15% in order to gain 15 to 30% in any stock is a steal deal.
Sharing the stock call template below for refence:
