Piramal Enterprises: Building launchpad for Take off

Piramal Enterprises is a Leadership stock and has been building base for major take off in 2014. Here’s why

Piramal Enterprises made a stunning recovery in 2009 and rallied to NEW HIGH then and there itself. It made a new high around 550-560 in May 2010.

 

Formation of Resistance around 540-560
Piramal Enterprises Weekly Chart

It took about 2 years and few months before stock broke out in late 2012 above 540-560. The stock rallied to 620-640 but then move fizzled out and it has been a year since breakout and stock has done nothing.
Breakout and Consolidation
Breakout and too much of consolidation is healthy sign and it’s just a matter of time before stock takes off in a major major bullish way. It means the next bullish move will be exponential and will happen in short period of time, if it happens. Right now, stock does not have any energy and it can slip to 100 week ma. It’s only when stock slips below 100 week ma: we will have to question and review the leadership status of the stock
What does this mean?
Piramal Enterprises is a Leadership stock and currently under bullish consolidation above 100 week ma. One can Buy the stock with closing stop loss at 3% below 100 week ma( now 517). The stock looks like to be in multi year Bull market till it proves otherwise. The stock is good for investment and one should be prepared to hold for longer time of time as long as stock does not breakdown below its bullish structure.