Chart Check: Coal India hits fresh record high: Should you buy or book profits in October?
Coal India Ltd, part of the coal sector, has rallied by about 30% in a month which pushed the stock to a fresh record high in September 2023 and the chart pattern suggests that the rally may not be over and will continue in October.
The stock rose from Rs 228 as of 30 August 2023 to Rs 297 which is the record high registered on 29 September 2023. The upside translates into a rally of about 30% in a month.
Short-to-medium term investors can look to buy the stock now or on dips for a possible target of Rs 345-385 in the next 4-5 months, suggest experts.
After the breakout from the critical resistance of 26-270 which proved to be a critical hurdle back in June 2019 in September 2023 provided much needed momentum to the stock.
On the monthly charts, an upward-sloping trendline is giving support.
On the weekly charts, a breakout from a cup-shaped or rounding chart pattern was seen earlier in the month of September.
“An upward trendline on the monthly chart is providing support for the stock. It has surpassed the resistance level that served as an intermediate barrier, indicating a change in trend from downward to upward,” Suraj Bathija, Founder & CSO at AlgoBulls, said.
“Since April 2023, each positive month has been traded with above-average volume and the price has been rising, indicating that the upward movement is receiving volume support,” he said.
The stock also took support above its 50-week moving averages on the weekly charts.
