Saturday, January 17, 2015

BSE CAPITAL GOODS INDEX SET TO SOAR

BSE CAPITAL GOODS INDEX SET TO SOAR (CMP:16200)

As shown in the chart below, BSE Capital Goods index, after touching a high of 21021 in 2007, plunged to 5394 in 2009 and was in a broad consolidation since then.


The consolidation took the shape of a symmetric triangle. The index broke out of this formation recently and is all set for a big upmove in the time to come. The formation projects the upside target of around 26700, which represents an upside of  65% from the current level and can materialise over next 2-3 years.


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