This is the chart of Newgen Software. It has formed a beautiful cup in the last one year and it near it’s 52 week high. RSI is also well positioned around 60 Levels, indicating a strong possibility of a break out. If it hold above the 700 levels we can see a good up move. With all the major IT stocks running up on Friday, there is a pretty good chance of the same effect trickling down to smaller Software Companies. Fundamentally, it is also not overvalued. It is trading at 25 PE with a 3yr sales growth of 15%.
Disc: Invested for Swing trade
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