stocks to buy: Chart Check: Oberoi Realty gives breakout from rounding bottom pattern; time to buy?

Oberoi Realty, part of the realty space, gave a breakout from a ‘rounding bottom’ pattern on the daily charts last week which has opened room for the stock to head towards Rs 1,200 levels, suggest experts.

The stock broke out from the neckline of the rounding bottom pattern on 27th July 2023 which was placed around Rs 1,088 levels. The stock touched a fresh record high of Rs 1,127 on 28th July 2023.

The neckline of the rounding bottom pattern also corresponds to the swing high of Rs 1,088 recorded on 15th September 2022.

However, after touching the record high the stock witnessed some profit taking which pushed the stock towards the breakout zone, but it is holding well. The stock closed at Rs 1,119 on 28th July 2023.

In terms of price action, the stock is trading below the 5-DMA but above 10,20,30,50,100, and 200-DMA on the daily charts, which is a positive sign for the bulls.

The daily Relative Strength Index (RSI) is at 71.4. RSI above 70 is considered overbought. This implies that the stock may show pullback. MACD is above its center and signal Line, this is a bullish indicator.

Oberoi Realty stock is currently charting record levels, signifying a robust surge in its performance. Remarkably, since November 2021, the stock has executed an impeccable correction without falling into lower highs or lower lows formations.

“Recently, the Oberoi Realty stock’s behavior exhibited a discernable breakout from a Rounding Bottom pattern, hinting at a likely continuation of the prevailing bullish trend,” Omkar Patil, Technical Research Associate at GEPL Capital, said.

“The stock prices have consistently found robust support in the 12 & 26-Day Exponential Moving Averages (EMA), which has served as a stable base, underpinning the prices during each subsequent rise,” he said.

“When analyzed from a momentum perspective, the Moving Average Convergence Divergence (MACD) has also indicated a breakout, underscoring a positive upward momentum,” highlights Patil.

“In light of these developments, we anticipate that the stock prices will continue their upward trajectory until they reach the 1200 mark in 3-4 weeks. It is recommended to place a stop loss at 1060, based on the closing basis,” he recommends.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

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