Date: Thursday 28 Oct 10

Case In Point: Arvind Mills Ltd

The stock had a big decline from January 2005 to March 2009 from the levels of
140 to 10. The stock was falling for a long period of time and it was structurally
down trend for stock to near about 4 years in row with big rally in between
2007 August to 2008 January and once again fell down during 2008 bear market
and went down to the levels of lower double digit ( 10 Rs ). After a five long
year the stock has take out the down trend line during August 2010.

One more interesting set up is also seen on the three years weekly chart is
“Rounding bottom”. 2

The technical pattern of rounding bottom on long term charts are quiet
interesting to trade. Might be it is something to do with the Company’s
business cycle itself. Such patterns are potent to trade in technician’s world of
knowledge.

CMP 60 Stop Loss of 45 for a target of 95 and higher….

Allah be praised – it looks like a good trade.

Superscript 2- Three years chart form 2007Nov to 2010Oct.
Superscript 1- Long-term chart form 2002-2010