Technical Breakout Stocks: How to trade Sona BLW, Intellect Design and PB Fintech on Friday
The S&P BSE Sensex rose nearly 200 points while the Nifty50 closed higher but failed to hold above the 22,000 mark on Thursday.
“The short-term texture of the market is still non-directional. For the bulls now, 20-day SMA (Simple Moving Average) or 22,000/72,500 would act as a trend decider level,” said Shrikant Chouhan, head of equity research, Kotak Securities.
Sectorally, buying was seen in power, public sector, metal, and capital goods stocks while healthcare stocks saw some selling pressure.
We have collated a list of three stocks that either hit fresh 52-week highs, or all-time highs or saw a volume or a price breakout.
We spoke to an analyst on how one should look at these stocks the next trading day entirely from an educational point of view:
Here’s what analyst Priyanka Limaye (CA, CMT) had to say:
Sona Blw Precision Forgings
The stock has formed a Rounding Bottom pattern on the weekly chart and is yet to break out from the pattern. Thursday’s high of 718.85 stands at a very crucial resistance. If it stays above it, then it can retest its all-time high of 839.90.
Intellect Design Arena
The stock has been in an uptrend with the support of trendline for quite a few months now. Now, on a shorter time frame, the stock has given a Small Rounding Bottom pattern breakout and is heading towards 1,280-1,300 with a stop loss of 1,050.
PB Fintech
The stock has been continuously making higher highs and higher lows on the medium-term charts.
It is in the process of forming a Rounding Bottom pattern on the
