Short-term traders can look to buy the stock now or on dips for a possible target of Rs 475 in the next 3-4 weeks, suggest experts.
The stock rose from Rs 337 recorded on 7th August 2023 to Rs 412 as on 14 August 2023 which translates into an upside of 22% in a week.
The stock hit a record high of Rs 477 on 4th January 2023 but it failed to hold on to the momentum. The stock saw a vertical drop from record highs but managed to find support above 50-DMA on the weekly charts in March 2023.
The stock did bounce back from March lows but found resistance around Rs 380 level. The stock slipped but again found support around 50-DMA on weekly charts in July 2023.
The stock surpassed the critical resistance of Rs 380 last week and also the neckline of the Symmetrical Triangle pattern placed around Rs 360-380 on the weekly charts.
A symmetrical triangle is commonly considered a continuation pattern. Also ReadThe recent momentum pushed the stock in an overbought category which suggests that some consolidation cannot be ruled out.
The daily Relative Strength Index (RSI) is placed at 83.4. RSI above 80 is considered strongly overbought. This implies that the stock may show a pullback. The daily MACD is above its center and signal line, this is a bullish indicator, Trendlyne data showed.
“The Jindal Worldwide stock has showcased resilience since April 2022, as it has steered clear of forming any lower highs or lower lows,” Omkar Patil, Technical Research Associate at GEPL Capital, said.
“Presently, there’s a noticeable breakout from a symmetrical triangle pattern in the stock, signaling a potential continuation of an upward trend,” he said.
The stock’s prices have consistently remained above the 12-week exponential moving average (EMA), a level that has historically acted as a dynamic support.
“Complementing this bullish stance, the RSI momentum indicator is on an uptrend, further emphasizing the increasing momentum in the stock’s price.
Going ahead we expect the prices to move higher till Rs 475 level where the stop loss must be Rs 368 strictly on the closing basis,” recommends Patil.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)