Chart Check: 18% rally in a week! This agri products maker gives a breakout from Symmetrical Triangle pattern
Gujarat Ambuja Exports Ltd (GAEL), part of the agricultural products industry, has rallied by about 18% in a week to touch a fresh 52-week high in September 2023 and the chart patterns suggest that the rally may not be over yet.
The stock rose from Rs 285 as of 18 September 2023 to Rs 338 recorded on 25 September 2023 which translates into an upside of over 18% in a week. The stock has rallied over 30% in a month – putting it in an overbought zone.
Gujarat Ambuja Exports, which has a market capitalization of more than Rs 7600 cr trades at a market capitalization of 27.05x and an earnings per share of Rs 12.49, BSE data showed.
Short to medium-term traders can look to buy the stock now for a target of Rs 360 in the next 3-4 weeks, suggest experts.
The stock closed at Rs 337 on 25 September.
The momentum pushed the stock to hit a record high of 347 on 25 September 2023. The stock gave a breakout from a Symmetrical Triangle pattern on the weekly charts which has opened room for the stock to head higher.
The stock has been making higher highs and higher lows for the past 5 weeks.
It climbed above the 50-week moving average in August 2023. It has made a strong base around 220 levels.
On the daily charts, 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 75.8.
RSI above 70 is considered overbought. This implies that stock may show pullback, Trendlyne data showed.
The daily MACD is above its center and signal Line, this is a bullish indicator.
“GAEL's stock showcases a compelling ascent. From April 2022 onwards, it underwent a noteworthy adjustment,
