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Last night’s US CPI of 7.1% for the month of November 2022 was not just noticeably down from 7.7% a month ago, but also lower than the expectation of 7.3%, bolstered the US markets, the ripple effect of which is seen with today’s gap up opening in the Indian markets. As investors’ sentiments are quite positive for the day, looking for long opportunities should be the ideal way to go about in today’s session.
The share price of TV18 Broadcast Limited (NS:), which is a television broadcast network with brands such as CNBC Awaaz, CNN-News18, News18India etc. is on the move. The stock is already in an established uptrend with many indicators pointing to the upward movement in the stock.
Looking at the 20 day-SMA (Simple Moving Average), the stock is comfortable trading above it. The distance from the average has also increased in today’s session, reflecting an uptick in the acceleration of the ongoing up trend.
Image Description: Daily chart of TV18 Broadcast with 20 SMA & volume bars at the bottom
Image Source: Investing.com
Another trend indicator, which is based on pure price action, is the basic structural movement of the stock. According to the Dow theory, a stock is deemed to be in an uptrend if it’s following a formation of a higher high and higher low. This simply means that every next trough (swing low) should be higher than the previous trough and in a similar fashion, every new peak (swing high) should also be higher than the previous peak.
This is the exact formation of the share price of TV18 Broadcast, making it a clear up trending stock. Today, the stock gained 6.06% to INR 42, as of 10:30 AM IST, as the rally resumes after a minor breather, which led to the marking of a trough of INR 38.9. If the stock takes out its previous high of INR 42.6, then it would establish a new peak, further strengthening the ongoing trend. The stock could easily travel to the next hurdle of around INR 45.5 and then to INR 47. These two resistance levels should be kept on the watchlist for long holders, in case they want to lighten up their positions. The sectoral strength is also supporting the stock, with the gaining 1.17% to 2,167, which is positive for the stock.
If the previous trough of INR 38.9 gets breached, then the uptrend formation would get distorted.
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