Wednesday, 8 March 2017

Why I'm Going to Hold Justdial

This is a quick look at one of the hottest stocks at the time of writing...Justdial.


The GREEN ARROWS in the graph below point to the 'GOLDEN CROSS' formation in Justdial's technical chart.

A golden cross occurs when a small wavelength moving average cuts a big wavelength moving average from BELOW.

Which in layman terms means that a long term price trend is being encouraged by a short term price trend, to either become bullish (if it's currently not) OR to become more bullish, if it is already bullish.


In case of JustDial, we see many 'golden crosses' above, highlighted by green arrows, as explained already...

And we see that more 'golden crosses' are on the cards in the near future.

The 50 day EMA (yellow line), the 100 day EMA (violet line) both are moving towards an intersection (from below) with the 200 day EMA (blue line), which is currently falling.

When these golden crosses form, Justdial's share price will shoot up even more.

if all goes well.


The if all goes well is always applicable, stocks being risky business....we should never look upon any writing as a 'prediction'. It's all trend spotting and trends can change without warning.


MORE POSITIVE FACTORS:

Justdial has been debt free since 2012.

Equity Dilution has been minimal since 2013.

Price Volume Trend is picking up.

RSI is healthy.

Force Index is roaring....

The ACDL and OBV lines are rising.

CMF has moved into positive territory...

Volume Moving Average is rising...



RISK FACTORS:

P/E ratio is lifting rapidly as its price lifts. (Major Risk)

Free Cash Flow is reducing (Moderate Risk)

Return on Equity has been flat since 2012, but in itself, the value is ok - approx. 21%. (Let's be realistic.)

Net Profit Margin has reduced from 26% to 20% (moderate risk)
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UPDATE:

The following graph shows the progress of Justdial on 24/03/2017.

1) The 50 day EMA (yellow) is about to cut the 200 day EMA (blue) from below.

2) The Force Index (blue) has been diverging from the price since 22/02/2017. Force Index has been falling, price has been rising.

3) The CMF (Chaikin Money Flow) (blue) has remained flat and the price has been rising. This too is divergence (since 22/02/2017.)

4) Stock Price (black curve) is currently finding support at the 15 day EMA (Red).

5) The 14 day RSI (Relative Strength Index - of Bulls) was falling but is rising again, and is slightly lower than 70%, which is considered to be the oversold zone by many analysts. Other analysts choose to look upon RSI above 80% as oversold. The 14 day RSI too has been diverging from the rising price since 20/02/2017.

6) The green GMMA has been rising which indicates rising medium to long term interest in the stock.

7) The red GMMA is above the green GMMA which indicates the presence of 'hot money' in the stock price movement - 'hot money' is money that moves in and out of a stock rapidly. Red GMMA above green GMMA indicates that price correction is around the corner, but, this indication must be seen in conjunction with other inertia indicators, stock news, public sentiment, financial ratios etc.


JUSTDIAL APPEARS POISED TO RISE MORE BUT THIS ANTICIPATED RISE, AT THE TIME OF WRITING, DOES NOT APPEAR TO BE FORCEFUL OR RAPID.

If we see the long term charts, Justdial is in a 'BEAR MARKET RALLY'.


UPDATE 25.03.2017

Justdial has found support from its rising EMA(15d) which is currently at 577. Force Index (13d) has lost steam and CMF (21d) has just entered the negative zone, value at -0.04.


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