Short-term traders can look to buy the stock on dips for a possible target of Rs 372 in the next 3-4 weeks, suggest experts.
The stock rose from Rs 260 as on 3rd October 2023 to Rs 322 recorded on 1st January 2024 which translates into an upside of over 23% in the last 3 months. It rose more than 8% in a week.
The stock hit a record high of Rs 326.45 on 1st January 2024 and the chart pattern suggests that the rally is likely to continue.
The momentum helped the stock to break from the August 2018 swing high of Rs 304 last week and formed a ‘W’ pattern on the weekly charts, which has opened room for the stock to head higher.
In terms of price action, the stock is trading well above most of the crucial short- and long-term moving averages such as 5,10,30,50,100, and 200-DMA, which is a positive sign for the bulls.
The daily Relative Strength Index (RSI) is at 72.3. RSI above 70 is considered overbought. This implies that stock may show a pullback. The daily MACD is above its center and signal Line, this is a bullish indicator.
“Exide Industries stock is currently trading at its all-time high, maintaining a consistent pattern of higher tops and higher bottoms, indicative of strong momentum,” Vidnyan S. Sawant, Head of Research at GEPL Capital, said.
“The stock has experienced a significant breakout, forming a W pattern and surpassing a multi-year swing high from 2018. This breakout signifies a robust structural development that has propelled the stock to higher levels,” he said.
The mean reversion strategy has been effective for Exide Industries, with the stock consistently bouncing back from the 12-week and 26-week EMAs.
“The ADX study, with a reading above 40, underscores the presence of a strong trend, and the bullish momentum is further confirmed by the +DI (Positive Directional Indicator),” highlights Sawant.
“We anticipate further upward movement in prices, targeting the 372 level. It is recommended to set a stop-loss at 303 based on closing values,” recommended Sawant.
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(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)