Company Selected : UPL (United Phosphorus Ltd.) a chemical Industry.
Chart Type : Line chart as it best suited to depict Dow theory.
Period selected : 20th June 2016 to 13th July 2018 covering two year span period.
It may be seen from the chart that uptrend started during end June 2016 continued till end July 2017. i.e, nearly one year the Trend was Bullish. This upward price movement indicates higher demand and week supply position. This is basic fundamentals of Dow Theory.
From the chart it may be seen there are many highs & lows along uptrend. However, major Highs & Lows (High top & High Bottom) are marked.
It is seen when uptrend moving higher than previous top, high volume is witnessed signalling further strong upward movement. This complies DOW theory concept. One such level at 746.0 is marked as ‘Entry” for long call with stop loss at 680.4 which is previous High Bottom. The range between entry to stop loss level is 65.6. Let this be called as “X” range
“Target” price to exit is market at 880 level which is around ‘2X’ range.
