Let’s analyze the Jubilant Foodworks chart on a multi time frame to find swing trade opportunity. Jubilant Food Works Limited (Jublfood) is an Indian food service company based in Noida, Uttar Pradesh which holds the master franchise for Domino’s Pizza in India, Nepal, Sri Lanka and Bangladesh, for Popeyes in India, Bangladesh, Nepal and Bhutan, and also for Dunkin’ Donuts in India. fundamentally its a very good stock and engaged in FMCG products, which makes it a choice for retail investors.
Weekly Chart Analysis
Every stock moves in a particular trend then shows a correction irrespective of the time frame. To analyze jublfood in a higher time frame, let’s focus on its weekly chart and try to understand the current price structure.
In weekly chart stock was in an uptrend from April 2020 to October 2021. However, a trader knows that stock can never move in one direction continuously, it has to retrace or consolidate. This is named as correction. A correction ends after forming any bullish pattern. And if the bullish pattern is formed near any Fibonacci level then it increases the probability of success. In case of jublfood it is forming an inverted head and shoulder pattern in weekly chart at 61.6% Fibonacci level. Lets read the recent price action of Jublfood to draw a meaningful conclusion.
- Stock is completing its correction in weekly time frame
- In weekly chart it is forming an inverted head and shoulder pattern
- Also the stock is strongly respecting 61.6% Fibonacci level
- Current formation is indicating end of the correction and start of a new up move
So, in weekly chart it is clear that stock is returning to uptrend after a correction. To find buying opportunity we need to see price action in daily time frame. Multi time frame analysis gives an accurate entry location and also increases the risk reward ratio.
Daily Chart
Recent price action shows bullishness in the stock and currently at a very good location to invest into this FMCG gem. Let’s try to read price action in daily chart to understand the buying opportunity in jublfood.
Stock was taking resistance at 600 level and after 4 failed attempts, finally it breakout of the resistance.
Also, a triangle pattern can be seen in daily timeframe
Before the breakout stock started forming higher high pattern that indicates uptrend and strength of buyers
If we observe the chart carefully, a buildup just before the breakout can be seen. The buildup increase the probability of successful breakout.
Trade Details
After looking at the weekly and daily time frame a new investing opportunity is identified. The stock is currently a good buy above 600 level with a stop loss below 550 and a target up to 750, 800, and finally up to 900 level in coming months.
Disclaimer: Stock analysis presented here is solely for educational purposes and not a trading or investing recommendation. Stock trading involves risk and consult your financial advisor before investing your hard earned money.