Technical Stock Pick: 10% rally in a week! Voltas forms Bullish Mat Hold Pattern which signals positive trend
Voltas, part of the household appliance industry, rallied more than 10% in a week to hit a fresh 52-week high last week and chart patterns suggest that the rally may not be over yet.
Short-term traders can look to buy the stock now for a possible target above 1,000 levels in the short to medium term, suggest experts.
The consumer durable stock rose from Rs 859 as of December 15, 2023 to Rs 947 recorded on 22nd December 2023 which translates into an upside of over 10% in a week.
The stock hit a 52-week high of Rs 957 on December 20, 2023. The stock rose more than 11% in a month.
The momentum helped the stock to breakout from a 200-point consolidation range on the weekly charts where levels above 930 acted as a stiff resistance while on the downside the stock found support above 730. The stock closed at 947 for the week ended December 22.
On the monthly charts, the stock formed a Bullish Mat hold candle pattern which suggests that the momentum is on the upside.
Bullish Mat hold candle pattern is a 5-candlestick pattern which is formed in an uptrend.
It started with a bullish candle followed by 3 small candles which signifies consolidation, and the fifth candle is a large candle.
Voltas will also benefit from the overall bullish trend seen in the consumer durable sector, suggest experts. The index also broke out from a 2-year consolidation patch.
“The S&P BSE Consumer Durable index has broken out after a two-year consolidation patch and has been trading in a rising channel for nearly 14 years,” Kapil Shah, Technical Analyst, Emkay Global Financial Services Limited and Trainer at FinLearn Academy, said.
“Despite an intermediate correction, the market seems to have terminated in the moving average band, pointing to
