MPHASIS - Symmetrical Triangle

31 Ağu

MPHASIS
Name - MPHASIS
Pattern - Symmetrical triangle
Status - Breakout
Cmp - 3104
Target - 5209
SL - 2670

Fundamentals : Good
Here are some key financial ratios for Mphasis Limited:

Price-to-Earnings (PE) Ratio: 28.71
Price-to-Sales (P/S) Ratio: 3.862
Debt-to-Equity Ratio: 0.093
Return on Equity (ROE): 15.2%3
Net Profit Margin: 11.6%3
Enterprise Value to EBITDA: 21.022
These ratios indicate Mphasis’s valuation, profitability, and financial health. The company has a relatively high PE ratio, suggesting it is valued at a premium compared to its earnings. The low debt-to-equity ratio indicates a conservative approach to leverage.

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 volatility1.
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 direction12.
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 point1.
Stop-Loss: A stop-loss order is usually placed just below the breakout point to manage risk1.