Hi Friends,
Sun Pharma had been in Down Trend ever since it made Top in April 2015. The stock has been trading in Downward Trend Channel since 2015. The Stock has declined around 60% in last 2 years. Overall consensus is Bearish on Pharma stocks with negative News from US FDA. According to many Analysts and Investors Pharma Story is over. Once the Darling of D-Street Pharma stocks are now dead and no one wants to Invest in Pharma.
However Technical Analysis suggesting something else. Sun Pharma seems to be in Triple Zigzag Correction. Currently it seems to be in last leg Z of the Zigzag. The Correction might get over near 470. Downtrend Channel support is near 470 and RSI has Positive Divergence as visible in Chart below.
If Sun Pharma takes Support near 470 & start Moving Up it might lead to Trend Reversal. As visible from the Chart below Sun Pharma has Long Term Trend Channel support near 470. The stock seems to be 4th wave Correction which is forming as a Triple zigzag. The Correction in Wave 4 might get over near 470.
If the stock manages to protect the support near 470 it could be a Turn Around Story. Sun Pharma may resume Up Trend in Wave 5 and head towards the higher end of Monthly Trend Channel above All Time High. The stock may provide 100-200-300% & Return in Next 3-5-7 years.
Speculators may Buy the stock near 470 with slop loss of Trend Channel Support. Ideally a move above the Falling Trend Channel or above 650 would be confirmation of Trend Reversal. Risk Averse Investors may Buy the Stock once it starts trading above Channel Resistance. Speculators may Buy Near 470.
Thanks & Regards,
Harsh Dixit.
Sun Pharma had been in Down Trend ever since it made Top in April 2015. The stock has been trading in Downward Trend Channel since 2015. The Stock has declined around 60% in last 2 years. Overall consensus is Bearish on Pharma stocks with negative News from US FDA. According to many Analysts and Investors Pharma Story is over. Once the Darling of D-Street Pharma stocks are now dead and no one wants to Invest in Pharma.
However Technical Analysis suggesting something else. Sun Pharma seems to be in Triple Zigzag Correction. Currently it seems to be in last leg Z of the Zigzag. The Correction might get over near 470. Downtrend Channel support is near 470 and RSI has Positive Divergence as visible in Chart below.
If Sun Pharma takes Support near 470 & start Moving Up it might lead to Trend Reversal. As visible from the Chart below Sun Pharma has Long Term Trend Channel support near 470. The stock seems to be 4th wave Correction which is forming as a Triple zigzag. The Correction in Wave 4 might get over near 470.
If the stock manages to protect the support near 470 it could be a Turn Around Story. Sun Pharma may resume Up Trend in Wave 5 and head towards the higher end of Monthly Trend Channel above All Time High. The stock may provide 100-200-300% & Return in Next 3-5-7 years.
Speculators may Buy the stock near 470 with slop loss of Trend Channel Support. Ideally a move above the Falling Trend Channel or above 650 would be confirmation of Trend Reversal. Risk Averse Investors may Buy the Stock once it starts trading above Channel Resistance. Speculators may Buy Near 470.
Thanks & Regards,
Harsh Dixit.
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