BLS INTL SERVS- Base-On-Base- LOOK FOR A BUY

Sep 10

1. VCP Analysis:
- Multiple Contractions: The stock is forming a VCP pattern where volatility has decreased with each successive pullback. You can see that each decline in price gets progressively smaller, which indicates that sellers are getting exhausted, and buyers are stepping in earlier at each pullback.
- Tightening Price Action: The pattern shows price action tightening, with the stock forming higher lows. This is typical in a VCP setup, as volatility contracts before a breakout.

2. Moving Averages (9 SMA and 21 SMA):
- 9 SMA (Blue Line): The stock price has been trading above the 9 SMA for a considerable time. This suggests that short-term momentum remains bullish.
- 21 SMA (Red Line): The stock is also above the 21 SMA, confirming that the medium-term trend is upward. Additionally, the 9 SMA crossing above the 21 SMA earlier signals a bullish crossover, a positive indication for the stock.
- Support from Moving Averages: The 9 SMA is offering short-term support, while the 21 SMA serves as a secondary support. If the stock pulls back, these two SMAs will be crucial levels to watch.

3. Breakout and Price Action:
- Resistance Break: The stock has recently broken through a resistance level around ₹404. This level has now turned into support. The breakout is a positive signal, especially in a VCP setup, as it often leads to continued upward movement.
- Volume Confirmation: Volume during the breakout appears significant, supporting the price movement. However, volume has decreased post-breakout, indicating potential consolidation before another move higher.

4. Key Levels:
- Support Levels:
- The first support is around ₹414, where the breakout occurred.
- The next level of support is likely the 21 SMA (currently around ₹438).
- Resistance:
- The immediate resistance zone is around ₹460-₹470. If the stock clears this level, it could indicate further upside potential.

5. Volume Consideration:
- Volume Contraction: Volume seems to have contracted during pullbacks, which is typical in a VCP setup. The most recent breakout above the ₹404 level came with an increase in volume, confirming the strength of the move.
- Recent Volume: As the stock approaches resistance, volume has diminished, which could indicate a period of consolidation before the next leg up.

Conclusion:
The stock is showing a well-formed **VCP** with tightening price action and decreasing volatility, a bullish sign. The breakout above ₹414, supported by volume, suggests further upside is possible. Watch for the stock to maintain its position above the 9 and 21 SMAs for continued strength. Keep an eye on the ₹460-₹470 resistance area, and monitor the volume for confirmation of any further breakouts.