The Sun Shines Bright - Surya Roshini - 20% UC

Surya Roshini - one of the largest Steel Pipes and Lighting companies in India shined bright on Friday (Dec 29) when it got locked in 20% UC

This 20% was backed with 2 important milestones:
1) Cup & Handle BO supported with Volume @ Monthly TF
2) Multi-Year Parallel Channel BO as well
3) Target for C&H BO is 965

Break-out Traders - What to watch for, Can we Trade this at CMP ? What will happen on Tuesday ? Read our analysis below:

1) Typically stocks which BO tend to Retest the BO zone - To find this out we need to do Multi-timeframe analysis
2) On Weekly Charts - we also notice a smaller Parallel Channel with an embedded Box pattern BO
3) Despite the 20% UC - the stock ended right on the resistance of Parallel Channel Trendline - and infact it was rejected just at market close couple of points below 20%

Given this, Tuesday opening is important - It has to open above the smaller Parallel Channel and ensure that it sustains above this channel the whole day. A rejection within the channel would lead to sideways consolidation between 577 to 777 before taking a BO to reach the Target

Avoid FOMO - ensure we invest our money at right time so our returns are not delayed. Risky players - may take entry at CMP for 50% and keep remaining funds to average "if" there is a retracement. Safe players - wait for Retracement and let it take support before taking positions