The Bull Market in India is still alive and kicking. A travel stock I highlighted early on was Uptrend just started with MMYT – Makemytrip. The current set-up for MMYT – Makemytrip is very bullish and odds are the up-trend will continue. Ideally the stock should start to move right now on its way toward the upper boundary of the bullish ascending triangle. Here are a few reasons why I am bullish MMYT:
- The overall bullish weekly ascending triangle chart pattern
- 3 bottoming tails ‘hammering out’ a bottom / support.
- Weekly moving average is acting as support
- The weekly MA 30 is RISING
Regular readers are familiar with the concept of rising long-term moving averages and why they are so important. If you need a refresher, here is a quick 3 minute Rising Moving Average Concept Video where I explain the concept. In my interview earlier this year I stressed how important it was to Avoid buying gold and silver mining stocks because the long-term moving averages were NOT rising.
Click on MMYT weekly chart to enlarge:
Overall this is a very constructive looking bullish chart. The bottoming tails simply increase the odds of a move to the upside. Ideally, this was a successful retest of the weekly MA 30 and the stock should start to rise now.
When people say ‘I am investing for the long term’, it means they are losing money. – Nassim Nicholas Taleb
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