SAPPHIRE

Looking at the daily chart for SAPPHIRE, that consolidation breakout above the 50 EMA is textbook. Volume on the green candles was 1.8x the 20-day average. I took a positional swing trade today with strict stop-loss below the recent swing low. Targeting next key resistance zone.

Fundamentally, Sapphire Foods India Ltd. is in a sweet spot with that recent order execution and margin improvement. Operating cash flows are actually converting into free cash flow rather than just sitting in receivables. Good risk-reward for patient 6-12 month investors.

Be careful chasing the morning rally on SAPPHIRE without a pullback. Notice how RSI touched 72 on the hourly chart. I prefer waiting for a healthy retest of the breakout level before adding more size. Capital preservation always comes first.