MTL Millat Tractors is making strides as it seeks to reenter its previous positive trend channel on the weekly chart. This follows a 50% correction from its prior bullish rally, and the company is currently in the expansion phase of this correction. Presently, it encounters resistance at 493, where a supportive trend line of the previous bullish channel coincides with a 61.8% expansion level of the last correction.
For potential investors, there's an opportunity for strategic entry in the range of 437-429 Rs, with a recommended stop loss at 410 and an initial profit target at 493. A weekly breakout above 493 would signal further potential gains.
It's worth noting that resistance along the trend channel may be observed in the range of 550-560 Rs, and a 100% expansion level would complete around 622 Rs. However, it's prudent to exercise caution and consider the recent increase in the company's free float due to a recent bonus issue. Achieving these higher targets may require significant new cash flow from market participants, which might be constrained by the upcoming elections.
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