Chart Check: Apollo Hospitals breaks out from a 72-week consolidation range; what should investors do?
Apollo Hospitals Enterprises Ltd, part of the hospital sector, breaks out from a 72-week consolidation range and a downward-sloping trendline on the weekly charts has opened room for the stock to head towards a fresh 52-week high.
The stock hit a 52-week high of Rs 5362 on 28 July 2023, but it failed to hold the momentum. The stock finally found support above the 50-week moving average (above Rs 4700) on the weekly charts before bouncing back.
The momentum helped the stock to break above 5000 levels on the weekly charts which has acted as a stiff resistance for the stock in the past 72 weeks (since Feb-2022).
It did break out from the resistance back in June 2023, but it failed to hold above 5000 levels for long.
This is the second time when the stock managed to climb above the 5000 resistance levels in September 2023 and if the momentum continues it could head towards 5800 levels in the next 6 months, suggest experts.
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, which is a positive sign for the bulls.
The daily Relative Strength Index (RSI) is at 57.6. RSI below 30 is oversold and above 70 is considered overbought, Trendlyne data showed.
The daily MACD is above its center and signal Line, this is a bullish indicator.
The Nifty index recently tested the support band between 19500 and 19600 after over 3% correction from its peak.
The index is showing signs of improvement at lower levels, particularly in the Nifty Healthcare sector, which appears to be picking up momentum after a time-wise correction.
“One promising stock in the healthcare sector is Apollo Hospital. The stock recently broke out above a 72-week
