Recent breakouts in three stocks, short term opportunity

Published March 27, 2019

Yesterday was a positive day for the Indian stock markets and the index Nifty 50 rose by 1.14 per cent to close at 11483 points. It has been a positive month for the markets where a gain of 5.7 per cent has been noted for the index.

Many stocks are making all time highs and some are giving fresh positive price breakouts either from a price formation or ditching the falling trend channel and making higher tops and higher bottoms. These breakouts can either turn out to be a boon which can result in handsome returns, or may be a short term play only to rake in investors. Hence like we always suggest, one must be cautious, be awake and always maintain a stop loss only to avoid any sharp drawdowns. After all, it's your own hard earned money.

Mahanagar Gas Limited (MGL.NS) Close: 999.75

Mahanagar Gas Limited has broken out of a rectangle formation in the medium term and a double bottom formation in the long term chart. Since March last year the price was swinging between support at 785 rupees and resistance at 970 level. The buyers finally decided to take a step forward and take the price above resistance. The stock is now inside a rising trend channel. Further rise in price is anticipated.

Momentum is positive and strong as the RSI-value is over 70, which suggests that the rate of rise in price relative to its price in the past is higher. Volume balance is also positive, indicating that buyers are aggressive while sellers are passive.

The stock has support at 966 rupees in the short term chart while resistance is around 1048 and 1280 levels.

Recommendation one to six months: Positive

Trent Limited (TRENT.NS) Close: 374.80

Trent Limited is inside a rising trend channel in all time frames; short, medium and long term. This shows that investors over time have bought the stock at higher prices and indicates good development for the company. The stock has given positive signal from rectangle formation both in the medium and long term charts by a break up through the resistance at 362. Further rise to 420 or more is signalled. There is support around 360 and 351 area.

Last week the price tested the same level and has started to turn back on the positive side. This is a positive sign. The recent price action has been supported by positive volume balance and rising momentum. The stock is overall assessed as technically positive for the medium long term.

Volume in the stock varies from time to time, hence one must be careful with regards to the quantity.

Recommendation one to six months: Positive

Can Fin Homes Limited (CANFINHOME.NS) Close: 335.35

Can Fin Homes Limited has broken out of the falling trend channel and resistance level of 293 in the medium term. The stock has risen sharply in the past two months and has given a buy signal from a rectangle formation recently. Further rise to 384 or more is signalled. Next resistance is at 434 rupees while support is around 293.

RSI is above 70 after a good price increase the past weeks. The stock has strong positive momentum and further increase is indicated. The volume balance indicator is also positive, as more buyers have bought the stock at rising prices and the number of sellers has decreased when the stock reacted downwards. The stock is overall assessed as technically slightly positive for the short to medium term.

Recommendation one to six months: Positive

 

 

The analyses are based on closing price as per March 26, 2019. Maintaining proper stop loss is always recommended.

Kirjoittaja

Kiran R. Shroff
Analyst
Investtech

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Archive:

21 March: Three buy and one sell

12 March: Cement stocks are posing good opportunity

08 March: Clear breakout and reversal from intermediate downtrend

07 March: Deepak Nitrite Limited looks promising to enter into a trade

06 March: Three buy candidates for medium to long term

28 February: Breakout in these three stocks invites for early opportunity

26 February: Two buy opportunities for the near term future

21 February: Stocks with RSI above 70, based on our research 

19 February: Close to selling point, time to be cautious 

15 February: These two sugar stocks look promising 

14 February: Three short to medium term opportunities 

08 February: One buy and one sell in stocks while index suggests caution 

06 February: One buy and one sell, short to medium term opportunities 

01 February: Upside breakout from price formations 

30 January: Buying opportunity: Reversing from trend channel support 

9 January: One positive and one to stay away from 

2 January:  A good investment opportunity 

2018

21 December:  Good buying opportunities

14 December:  Positive on these three stocks

11 December:  One buy and one sell signal

07 December:  Sell Signals in Three Big Stocks

04 December:  Highest scorer of our Top 50 list

30 November: Positive stocks with 5-11 per cent upside potential

28 November: Buy signal on high volume

27 November: One Buy and One Sell Signal

23 November: Fear dominates these stocks

21 November: Sell signal, time to stay away

20 November: Early opportunity from short term buy signal?

16 November: Two Buy Signals and One Sell Signal

15 November: Buy signal in this one

14 November: Solid buy signal

13 November: Big auto stocks comparison

09 November: What to wait for?

06 November: Banking stocks look positive

02 November: Positive on this one

01 November: TECHM, NIFTY50 and Hausse

31 October: What are investors thinking?

30 October: Bullish on these three stocks

26 October: Three potential candidates to ride on

24 October: Three big Metal stocks, Seasonal variation

22 October: Among top performers on our Top 50 list

18 October: Three stocks investors should stay away from

17 October: Flowing against the tide

16 October: Positive on these 2 stocks

11 October: Over 45 per cent rise

10 October: 3 negative stocks

9 October: The Indian banking space

5 October: Nifty closes at a crucial level

2 October: Price formations in the long-term charts

28 September: Positive on Biocon Limited

26 September: Bearish outlook

25 September: 3 solid buys

20 September: State Bank of India story!

18 September: Weekly technical analysis

"Investtech analysoi markkinoiden psykologiaa ja antaa konkreettisia kaupankäyntisuosituksia päivittäin."

Espen Grønstad
Partner & Senior Advisor - Investtech
 


Investtech ei takaa analyysien tarkkuutta tai kattavuutta. Kaikkien analyysien tuottamien neuvojen ja signaalien käyttäminen on täysin käyttäjän vastuulla. Investtech ei vastaa mistään tappioista, jotka saattavat syntyä Investtechin analyysien käytön seurauksena. Mahdollisten eturistiriitojen yksityiskohdat mainitaan aina sijoitusneuvon yhteydessä. Lisätietoja Investtechin analyyseistä löytyy täältä disclaimer.


Investtech ei takaa analyysien tarkkuutta tai kattavuutta. Kaikkien analyysien tuottamien neuvojen ja signaalien käyttäminen on täysin käyttäjän vastuulla. Investtech ei vastaa mistään tappioista, jotka saattavat syntyä Investtechin analyysien käytön seurauksena. Mahdollisten eturistiriitojen yksityiskohdat mainitaan aina sijoitusneuvon yhteydessä. Lisätietoja Investtechin analyyseistä löytyy täältä disclaimer.

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