Astra Microwave Products is indicating the signs of major upside reversal and looks good for short and long term investment because it has given good convincing breakout with higher than average volume. I am going to share my own outlook and investment strategy about this stock for short term as well as long term with its chart.
The outlook is based on my personal experience and purely based on technical analysis. I am just sharing it but I don’t take responsibility for any trading or investment decision.
So, let’s have a close looks at its monthly and weekly chart. First I am looking at its life time move on monthly chart based on Elliott Wave Analysis.
This is monthly time bar chart of Astra Microwave (ASTM) covering life time of its move. The chart indicates that major wave (1) and (2) may be completed and wave (3) may be in progress. This stock can bounce 3 folds in coming years if the counts marked on this chart are correct.
But this analysis report is not mainly based on Elliott Wave Theory analysis but based on major resistance breakout. ASTM recently gave convincing breakout above 06 years resistance line with good volume on weekly chart. Let’s have a look.
This is weekly time bar chart of Astra Microwave Products (ASTM) covering last 6 years of move.
106-100 was good weekly support of ASTM on closing basis during 2014-12018 and this stock tested this support 5 times before breakdown in 2018.
Later ASTM tested this resistance around 100-106 3 times during 2018-2020 and declined back to register low of 46 during 2020 crash. But it bounced back sharply and broke this major resistance 106 with good volume. We can see that Volume is at its highest at the time of breakout and after breakout. This stock also closed 2 full weekly candles above 106, thus sustaining above the resistance.
Astra Microwave covered the full decline happened during 2020 crash, gave breakout above 06 years resistance with huge volume and also sustaining above the resistance. All these factors are indicating the signs of major reversal.
This stock can touch 165 as immediate/short term targets and further can double-triple in coming years. We need to manage this investment with trailing stoploss on every rise.
There is temporary trend line resistance around 122-125. We can expect a very sharp bounce once this trend line is broken with good volume.
Let’s have a closer looks at breakout on same weekly chart.
This is again weekly chart of Astra Microwave Products covering last 02 years of move. We can see that this stock is sustaining above resistance line after breakout and volume increased drastically at the time of breakout and after breakout.
Volume is higher during Green Candles and Volume is lower during red candles after breakout. It indicated that participation is more during upside and participation is less during downside.
I personally would like to Buy this stock for medium to long term at current price of 109 and on every decline till 106 with stoploss below 100 on weekly closing basis (a full weekly candle must closed below 100 for stoploss) for immediate target 165. After 165, I will check the charts again and will manage investment with trailing stoploss.
For Trading, I would like to buy this stock on every decline with stoploss below 106 for quick 5-10% gain.