Mukka Proteins Technical Analysis August 2024

Introduction 

For New Investors and Traders, Technical Analysis always seem to be challenging. It is often difficult to analyze charts, candlesticks, graphs and tools. However in order to become a successful investor or trader one certainly needs to study the stock patterns before blindly investing hard earned money on a trade.
 
Most Traders like to make a quick buck by investing huge amounts of capital. They often enter into trades without reading the charts and patterns that depict market sentiments.
 
Candlestick patterns are easiest form of patterns that will enable new traders to be confident in their trade. 
 
Before we dive deep into analyzing the Candlestick Patterns of Mukka Proteins. It is highly advisable to read more about the various candlestick patterns.
   
Some of the Candlestick patterns that I would recommend for the purpose of further reading are as follows 
 

Bullish Candle

  1. Engulfing Green
  2. Hammer

Bearish Candle

  1. Engulfing Red
  2. Shooting Star

Neutral Candle

  1. Doji
The above are the only Candles that one needs to read in order to understand the basics of technical analysis  

Once you are familiar with the above candles, one needs to identify the patterns they form in order to confirm whether a trade is worthwhile or not

Bullish Candle Stick Patterns

  1. Morning Star
  2. Tweezer Bottoms

Bearish Candle Stick Patterns 

  1. Evening Star
  2. Tweezer Tops 

Neutral Candle Stick Patterns

  1. Dragonfly Doji
  2. Gravestone Doji
 

Technical Analysis for Mukka Proteins - August 2024

The shares of Mukka Proteins have been trading on NSE within the range of Rs. 42 to Rs. 52/- for the month of August 2024. 

Result Day

The Quarterly Results for the Quarter of April to June of Mukka Proteins were released by the company on August 13th 2024. However the stock fell drastically on that date, since the company posted poor results with revenues dropping by 38% Year on Year and Profit increased by a meager 17% Year on Year. The reason for fall in revenue was because it is an aquaculture company and June- July is usually considered as a slack season where no fishing takes place. This was the reason for fall in share price where the share fell to Rs. 42 breaching it's support price of Rs. 48.50/-

 

Post Results

Post Results the shares of Mukka Proteins began to stabilize and gave a big green candle also known as the engulfing candle 
 

 The Above candle was from August 19th 2024 where price shot to Rs. 50.59

Candlestick Pattern Formation

As discussed earlier one of the most famous candlestick formations that show Bullish trend. (Bullish trend also means upward trend) is Tweezer Bottoms.

Tweezer Bottoms is a bullish candle pattern which is usually formed at the end of the downtrend where the price makes lower lows. This pattern is formed at support levels where the sentiments of the traders reverse and buyer begin to buy again, thus moving towards an upward journey 

Characteristics of Tweezer Bottoms

There are 3 factors to recognize a Tweezer Bottom Candlestick Pattern
  1. The Initiating trend is a downtrend
  2. The first Candle is a bearish candle
  3. The second Candle is a bullish candle with an identical low on previous day
The above candle is a picture of Tweezer Bottom Candlestick Pattern
where there is a downtrend in previous days. The first candle is bearish and the second one is bullish with both having identical lows on two consecutive days.

Chart of Mukka Proteins from August 19th to August 23rd 

          If you carefully look at the last 5 candles on the chart the range from August 19th to August 23rd 
The candle on August 19th is an engulfing green as discussed in the diagram above. 
Soon after the bullish candle, one can see a downtrend in the stock from August 20th to August 22nd which clearly fulfills the first criteria for Tweezer Bottom candlestick Pattern
The first candle is Bearish fulfilling the second criteria and the next candle is a bullish candle that has similar lows of the preceding day fulfilling the third criteria

This clearly goes on to show that it is a Tweezer Bottom candle stick pattern

How to Trade in Tweezer Bottom Pattern?

One can enter into a trade at the high made on August 23rd that is Rs. 50.50/- and keep stop loss at the lows which is Rs. 48.50/- which will now serve as a support for the shares of Mukka Proteins. One can exit at the resistance level of Rs. 55/-

CAUTION:

The success ratio of Tweezer Bottoms pattern is 56%. Tweezer Bottom Pattern is a bullish Reversal Pattern which points towards upward journey. However in order to increase accuracy, you can trade the Tweezer Bottom using pullback, Moving averages and also use support and resistance levels as indicators to trade.

Disclaimer

It is important to note that the analysis was purely for the purpose of education and information to those interested in evaluating the performance of Mukka Proteins. The analysis is based on factual information but also includes a certain level of uncertainty. Kindly do not consider this as a buying or selling recommendation. Consult your financial advisor before taking positions in Mukka Proteins. Stock Market are subject to sentiments, uncertainty and market risk. Please do your own due diligence before entering into a trade. It is a risky venture and we are not in anyway responsible for any financial loss.