On Thursday, the stock rose more than 7%, supported by a huge surge in total trading volume. We are halfway through the trading session and the volume for the day has already surpassed the volume of the previous trading session. In fact, it registered the highest volume since late October 2022. With this strong rally, the stock marked a new 4-month high.
Considering the stock has marked a new 4-month, it is trading above its all-important moving averages i.e. 20, 50, 100 and 200-DMA. One of the key observations is that the stock has seen a convergence of the three moving averages i.e. 20, 50 and 100-DMA and historically, breakouts occurring after convergence have been reliable.
The 14-period daily RSI has jumped above the previous swing high and is inching higher, which bodes well for the stock. The daily MACD is pointing north, sustaining above its nine-period moving average thus validating the stock’s positive bias. So, keep a close eye on this stock!
This article is powered by ‘Dalal Street Investment Journal’, India’s No 1 investment magazine. To be regularly updated about winning stocks and recommendations do join by clicking here.
Disclaimer : This above is third party content and TIL hereby disclaims any and all warranties, express or implied, relating to the same. TIL does not guarantee, vouch for or endorse any of the above content or its accuracy nor is responsible for it in any manner whatsoever. The content does not constitute any investment advice or solicitation of any kind. Users are advised to check with certified experts before taking any investment decision and take all steps necessary to ascertain that any information and content provided is correct, updated and verified.