In your interest.
Online Personal Finance Magazine
No beating about the bush.
Binani Industries was at a high of about Rs140 on 25 April 2008. Thereafter, the stock collapsed to take support at Rs26 on 31 October 2008. It made a feeble attempt to rise again, touching Rs44 on 14 November 2008. At this point, the decline was not over, and all further attempts to rise were feeble. The stock had yet to form a base. It finally touched Rs26 on 6 March 2009, a level where the base formation was over. In the ensuing bull market, the stock rose to Rs93 by 5th June, fell to Rs56 on 26th June and, after a few more ups and downs, now stands at Rs86. The rise to Rs93 following the base formation, the subsequent decline to Rs56, and the subsequent ups and downs with an upward bias can, together, be seen as a right-ascending triangle. The stock is now attempting to break out of this triangle formation on greater volumes. The distance from the base level of Rs26 to the first high of the triangle at Rs93, extrapolated from the last low within the triangle of Rs70, gives us a target price of Rs130–Rs140. This should be reached in about four months.