Chart Check: 20% rally in a month! MAN Industries sees multi-year breakout from falling trendline; time to buy?
MAN Industries Ltd, part of the iron & steel industry, has rallied by about 20% in a month pushing the stock to a fresh 52-week high earlier in September but the chart pattern suggests that bulls are here to stay.
Short-to-medium-term traders can look to buy the stock on dips for a possible target above 270 levels in the next 2-3 quarters, suggest experts.
The stock rose from Rs 143 as on 21 August 2023 to Rs 172 recorded on 21st September 2023 which translates into an upside of over 20%.
The momentum pushed the stock to a fresh 52-week high of Rs 188 on 4 September 2023. It failed to hold on to the momentum, but it is still trading above crucial support levels.
The stock witnessed a breakout from a falling trendline at 161 levels (swing high of Rs 15 January 2018) on the quarterly charts.
The stock closed at Rs 171 on 21st September 2023.
If the stock holds above 161 till the end of September, it will add strength to the bulls and will open room for the stock to surpass Rs 238 which is also the record high registered on 1st October 2012.
In terms of price action, 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 on the daily charts.
The daily Relative Strength Index (RSI) is at 55. RSI below 30 is oversold and above 70 is considered overbought, Trendlyne data showed.
