Chart Check: Nearly 50% rally in 1 month! Golden Cross in August 2023 – what does chart suggest for Indiabulls Housing Finance?
Indiabulls Housing Finance Ltd, part of the housing finance company, has rallied by about 50% in a month to hit a fresh 52-week high in August 2023 and the chart structure suggests that the rally may not be over yet.
The stock rose from Rs 127 as on 27th July 2023 to Rs 188.70 which is the new 52-week high recorded on 28th August 2023 translating into gains of over 48% in a month.
The housing finance company recorded a breakout above 130 levels from a falling trendline resistance in July 2023 from where it witnessed a steep rally which took the stock towards 170 levels at the beginning of August.
The stock broke out last week after consolidating in a range where 170 acted as a resistance while on the downside 147 acted as a support in August.
The housing finance company also recorded a Golden Crossover on the daily charts where the short-term moving average (50-DMA) crossed the long-term moving average (200-DMA) from below on 4 August 2023 on the daily charts.
“Indiabulls Housing Finance stock on its daily charts has broken out of its falling trend line, along with a swing high breakout at 159 levels, making it a strong case for buy.
It can be observed that the stock, post its breakout, has retested the support zone of 145 levels & has confirmed the pattern,” Sujit Deodhar, Head — Technical Analyst, Wellworth Share & Stock Broking Ltd., said.
“A retracement from swing highs of 183 levels has decoded how the stock prior to the breakout faced stiff resistance at 159 levels, which is the 75% retracement level,” he said.
“This signifies the bullish structure post breakout at 159 levels and projects a target of Rs 240 in short term which is the 161.80% level of the retracement drawn,” recommends Deodhar.
“Traders can buy this
