Shares in the S&P BSE Smallcap Index rose from Rs 450 on December 23, 2022 to Rs 619 recorded on January 23, 2023, representing an increase of 38%.
The small cap stock hit a new 52-week high of Rs 628 on Jan 19, 2023. It has gained more than 4% in a week and over 40% in the past 3 months.
Recent price action has helped the stock break out of the pennant formed on the weekly chart. Pennant is similar to a symmetrical triangle but with a few differences.
A pennant is usually formed on a much smaller time frame, such as 10-15 days. Pennants can be created by a simple convergence of straight lines that match the highs and lows of intermediate bars. also read
In terms of price action, the stock is trading well above most of the important short-term and long-term moving averages like the 5,10,30,50,100 and 200-DMA, which is a positive sign for the bulls. price speculation up.
The Relative Strength Index (RSI) is at 73.4. RSI above 70 is considered overbought. This implies that the stock may show a pullback. MACD located above the center line and the signal line, this is a bullish indicator.
“Surya Roshni share price started to rise from Rs 60 (April 2020) to Rs 861 (October 2021), creating a series of higher highs and higher lows, supported by volume,” said Bharat. Gala, President – Engineering Research,
“During the move, the stock consistently traded above average. The stock was then corrected to Rs 333 in August 2022. The stock traded in a range (Rs 300-600) from November 2021 to December 2022 and recently formed four Positive weekly candles,” he said.
“A breakout of the Pennant pattern can be seen in stocks. The stock recently hit a high of Rs 629, above its recent high. The Aroon Up/Down, MACD & KST indicators show buying power for stocks,” Gala emphasized.
“The targets could be Rs 800-1,000. If the stock price corrects down, the buy levels are Rs 585-558-537-515-503. He recommends a stop loss in the trade of Rs 480.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. These do not represent the views of The Economic Times. )