GSFC

In all the volatility of 2011 one counter that returned gains to investors at consistent pace was GSFC. However Nov 2011 was the month where the reliability factor was taken away from the counter. Stock in a matter of 5 weeks fell from 500 to 350 levels without much volumes. Even the most disciplined of investors could not get out of the stock in time.

Post the huge fall the stock has been steadily recovering and showing the same character that it used to show - consistent returns week on week month on month. 

Factors in favor of GSFC:

a) Chart has been consolidating a while from 380 to 430 levels and now it is showing a potential ascending triangle formation. Any break above 430 levels will take it to 475-500 levels.

b) Moving averages have formed a tight pattern and are heading upwards. Stage seems set for a good upmove.

c) The rises are accompanied with good volumes which is another encouraging sign.

Risk

a)  A break below 400 can lead the stock to downwards or an extended sideways movement.

b) Not a very highly traded counters hence the fall can be steep.

Strategy

Buy at current levels and have a stop at 394 levels breaking which one should not remain invested. Targets to look out for are 475-500 at which the stock needs to be reassessed.