Chart Check: Breakout from 2-year consolidation phase could take Bharat Forge to fresh record highs; time to buy?

economictimes.indiatimes.com:

Bharat Forge, part of the casting & forging industry, recorded a breakout from a 2-year consolidation phase on the weekly charts recently which could push the stock above Rs 1,000 levels in the next 2-3 months, suggest experts. The stock has been hovering in a narrow range where Rs 900-920 acted as a stiff resistance while on the downside levels above Rs 740 acted as crucial support on the weekly charts. The stock did witness a breakout earlier this week when it touched a record high of Rs 937 on 1st August 2023, but it failed to hold on to the momentum.

The stock witnessed mild selling pressure, which was in line with the trend seen in broader markets but managed to hold on to Rs 900 levels. The stock closed at Rs 905 on 2nd August 2023. As long as the stock is trading above Rs 840 levels, bulls should be able to take control, suggest experts.

In terms of price action, the stock is trading below the 5-DMA but above 10,30,50,100, and 200-DMA on the daily charts. The daily Relative Strength Index (RSI) is at 65. RSI below 30 is oversold and above 70 is considered overbought, Trendlyne data showed.

MACD is above its center and signal line, this is a bullish indicator. “The stock price of Bharat Forge has given a breakout with rising volumes from the 2-year-long consolidation phase. The ticker is in strong uptrend with the formation of higher highs and higher lows on the short term as well as long term charts,” Aditya Thukral, Senior Analyst at Master Capital Services, said.