Chart Check: Breakout from flag pattern on weekly charts makes this logistics company an attractive buy

economictimes.indiatimes.com:

Container Corporation of India, part of the logistics service provider industry, gave a breakout from a flag pattern on the weekly charts which suggests a continuation of the uptrend. Short-term traders can look to buy the stock now or on dips for a possible target of Rs 750-780 level in the next 2 months, suggest experts. The stock hit a 52-week high of Rs 828 on 9th November 2022 but it failed to hold on to the momentum.

The stock formed a strong base above Rs 555 levels which also corresponds to the 52-week low recorded on 29th March 2023. The stock witnessed a strong rally but it lost momentum around Rs 680-690 levels in June. The stock is now hovering around crucial resistance levels on the daily charts.

However, on the weekly charts, it gave a breakout from a flag pattern which suggests that bulls are likely to remain in control. Bullish flag patterns are formed in stock with strong uptrends. The pole is formed from the vertical rise seen in the stock price while the flag resembles the period of consolidation.

A breakout from the flag on the higher side results in a strong continuation of the upmove. The stock is also on the verge of recording golden crossover on the weekly charts where the short-term moving average (50-WMA) moves above the long-term moving averages (200-WMA). In terms of price action, the stock is trading above most of the crucial short and long-term moving averages on the daily charts, which is a positive sign for the bulls.

The daily Relative Strength Index (RSI) is at 57.3. 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.