ITC - Symmetrical Triangle

31 Ağu

ITC - Symmetrical Triangle

Name - ITC
Pattern - Symmetrical triangle
Timeframe - Wkly
Status - Breakout with good volume
Cmp - 501.9
Target - 602
SL - 463

Fundamentals:
ITC Limited is a diversified conglomerate with strong fundamentals. Here are some key financial ratios and highlights:

Key Financial Ratios
Price-to-Earnings (PE) Ratio: 30.861
Price-to-Book (P/B) Ratio: 8.821
Debt-to-Equity Ratio: 0.0011
Return on Equity (ROE): 28.69%1
Net Profit Margin: 26.13%1
Enterprise Value to EBITDA: 18.171

Highlights
Profit Growth: ITC has shown a good profit growth of 16.15% over the past three years2.
Return on Capital Employed (ROCE): 36.42% over the past three years2.
Debt-Free: The company is virtually debt-free with a healthy interest coverage ratio of 347.532.
Strong Margins: ITC maintains high margins, with an EBITDA margin of 36.76%1.
Business Strengths
Diverse Portfolio: ITC operates in various sectors including FMCG, hotels, paperboards, packaging, agribusiness, and information technology3.
Strong Brand: The company has a robust brand-building capability and extensive distribution network.
Sustainability: ITC has a good ESG score relative to its sector4.
These fundamentals indicate ITC’s strong financial health, profitability, and growth potential. Are you considering investing in ITC, or do you need more detailed information on any specific aspect?


Pattern:
A symmetrical triangle pattern is a common chart pattern in technical analysis that indicates a period of consolidation before the price breaks out, either upward or downward. Here are the key features:

Structure
Converging Trendlines: The pattern is formed by two trendlines that converge towards each other. One trendline connects a series of lower highs, and the other connects a series of higher lows12.
Volume: Typically, volume decreases as the pattern progresses, indicating a reduction in trading activity and volatility.
Interpretation
Neutral Pattern: The symmetrical triangle is considered neutral, meaning it can signal either a continuation of the existing trend or a reversal, depending on the breakout direction.
Breakout: A breakout above the upper trendline suggests a bullish move, while a breakout below the lower trendline indicates a bearish move12.
Trading Strategy
Entry Point: Traders often enter a position when the price breaks out of the triangle with increased volume.
Price Target: The price target is typically estimated by measuring the height of the triangle at its widest point and projecting that distance from the breakout point.
Stop-Loss: A stop-loss order is usually placed just below the breakout point to manage risk1.