Sunrise
Sun TV Network has broken out of the downward sloping trend line that was almost parallel to its previous swing lows, thereby forming a downward sloping parallel channel. Now, since it has broken out of the previous weekly swing’s high of Rs438, it appears to have started its next leg up. The minimum target comes to Rs495, which is the previous monthly swing’s high. Above these levels it can achieve the equality target of Rs550, which is the next monthly swing’s high.
The momentum indicator, Know Sure Thing, is well in buy mode on daily, weekly and monthly charts which is quite a positive sign for bulls in the medium term. The Bollinger bands have expanded well with the rise in the price, thus confirming the break-out. The stock took a good support at its 20-month moving average, which is also the mean of the Bollinger bands on the monthly chart.
Investment strategy
Buy Sun TV Network at current market price of Rs440.35 for the target of Rs495 and Rs550 with a stop loss at Rs410.
Risk: Reward 1 = 1: 1.84
Risk: Reward = 1: 2.72
Risk: 440.35 – 410 = 29.65
Reward 1: 495 – 440.35 = 54.65
Reward 2: 550 – 440.35 = 89.65
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