Tag: Heritage Foods

With elections taking off in India, Heritage Foods which can be called a “Politically linked Enterprise” has been on a over-drive in recent days. But the recent rise is nothing if one shifts the focus from daily charts to Monthly charts for here you can see a clear cut Pole and Flag pattern. If this pattern is true and the stock finally moves to the target area (Pole length is 220 Rupees and breakout is at 250, you do the calculation 🙂 ), this can be a true multi-bagger identified using long term technical charts.

 

Heritage Foods is one of the few listed stocks exclusively focused on dairy though in recent times they have ventured into food and grocery retailing under the brand “Heritage Fresh” as well. The stock saw a major re-rating in mid June 2012 when it started to move higher and tripled in price by the end of 2012. 2013 was a year of consolidation for the stock as it slid down in a broad channel formation. January has been a good follow up month after the rise we saw in December and with today’s rise, we are once again testing the upper trend line of the channel. 

A break-out above the channel can provide for a move of at least 75 rupees which is the width of the channel though a reversal here may see it go back to its support level of 200 EMA at the very least.