Chart Check: Bank of Baroda breaks out from rounding bottom pattern; where is the stock headed?

economictimes.indiatimes.com:

Bank of Baroda, part of the PSU space, rallied more than 20% in 3 months which helped the stock to breakout from a rounding bottom pattern on the weekly charts which has opened room for the stock to head towards Rs 240 level, suggest experts. The stock rose from Rs 166 recorded on April 10th, 2023 to Rs 203 as on 10th July 2023 which translates into an upside of over 22% in 3 months. The PSU stock witnessed some profit-taking after hitting a record high of Rs 210 on 10th July 2023.

However, experts are of the view that as long as the stock holds above the neckline of the rounding bottom breakout placed at around Rs 197 level, bulls should be able to take control. A rounding bottom is formed when the market sentiment shifts from bearish to bullish at a steady pace. This pattern is usually formed at the end of the downtrend.

Also Read In terms of price action, the stock is trading well above most of the crucial short and long-term moving averages of 5,10,30,50,100 and 200-DMA on the daily charts which is a positive sign for the bulls. The daily Relative Strength Index (RSI) is placed at 64.1. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed.

MACD is above its center and signal Line, this is a bullish indicator. Bank of Baroda has exhibited exceptional performance, evident from its rising ratio against the benchmark index Nifty PSU bank. “Bank of Baroda stock displayed a breakout of the rounding bottom pattern near the support level within a parallel channel.