Technical Stock Pick: Up 20% in 3 months to record highs! Bulls are likely to stay in charge of this cement stock; here’s why
Short-term traders can look to buy the stock now for a target above Rs 700 levels in the next 2-3 months, suggest experts. Shares of Ambuja Cement rose from Rs 501 as of December 6, 2023, to Rs 603 recorded on March 7, 2024, an upside of about 20% in just 3 months.
The momentum helped the stock to break out from the December 2022 swing high of Rs 598 earlier in February 2024 and the momentum continued in March as well.
“Ambuja Cement has been on a remarkable journey, hitting an all-time high of Rs 615 and simultaneously breaking its 52-week high. The company's stock is currently exhibiting several bullish signals, making it an attractive prospect for investors,” Suraj Bathija, Founder & CSO at AlgoBulls, said.
Most of the technical indicators suggest that bulls are here to stay and dips can be used as a buying opportunity.
“Various technical indicators, such as the Awesome Oscillator and the Aroon indicator, are flashing bullish signals, indicating a favorable market sentiment towards Ambuja Cement,” he said.
In terms of price action, the stock is trading below 5 and 10 DMA but above 20, 30, 50, 100, and 200 DMA on the daily charts.
Ambuja Cement's stock price is trading comfortably above both its 50-day and 200-day simple moving averages (SMAs) as well as exponential moving averages (EMAs), indicating a sustained uptrend in the market.
This is a positive sign for investors looking for confirmation of the stock's bullish momentum. Recent positive breakouts from key resistance levels, notably at Rs 600,
