There is a hammer formation on the weekly chart of McDowell although it does not have a good tail. But, we have other compelling reasons to take this trade. The stochastics is still in oversold region and hammer is formed at the support.
Also on daily, there was a bullish engulfing pattern at the support and the stock has already started going up.
So, we are bullish on this stock with a target of 2610 and a SL of 2250.
No matter how bullish we are and bullish chart patterns are formed we should always use a stop loss.
Target achieved in McDowell.
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