Chart Check: 18% rally in a month! This cement stock could retest record highs after breakout from W chart pattern
economictimes.indiatimes.comJK Lakshmi Cement Ltd, part of the cement industry, has rallied more than 18% in a month, which helped the stock to surpass the W chart pattern on the daily charts.
Short-term traders can look to buy the stock for a possible target of Rs 890 in the next 3-6 months, suggest experts.
The cement stock rose from Rs 683 recorded on October 17 to Rs 812 as of 17 November 2023 which translates into an upside of more than 18% in a month.
The stock hit a record high of Rs 897 on 14th December 2022, but it failed to hold on to the momentum. The stock found support above 650 in March 2023 and above 600 levels in July 2023.
The stock witnessed a breakout from the W pattern where the neckline was placed above 700 levels in November.
The momentum also helped the stock to climb above 50 and 200-DMA on the daily charts earlier in November which is a positive sign for the bulls.
“The stock has displayed above-average volumes, breaking upward from both the flag and pole chart patterns.
It has also surpassed the W chart pattern on the daily chart with notably high volumes,” Suraj Bathija, Founder & CSO at AlgoBulls, said.
“The daily and weekly RSI indicators have crossed the 60-level zone, indicating bullish momentum. Over the past 30 days, the stock has outperformed the CNX500 delivering an impressive 18% return,” he said.
“The volume of shares purchased for delivery is substantial, with investors taking home between 20% and 25% of shares each week,” recommended Bathija.
As of November 2023, the company's financial results have exceeded market experts' predictions.
Promoter's share ownership has remained steady at 46.31% over the past year.
