HBL has traded heavy volumes on Friday and today and price moved from sub 100 to above 110. Today was a gap up day with Friday’s high being 109.50 and today’s low being 110.15. Stock price took rejection from levels of around 118 which in near term would be a key resistance to cross.
For stocks in a tight range for a long period of time, (HBL spent nearly 20 weeks between broad levels of 90-105, with ocassional dips and rallies above and below these levels, but weekly close remained within this range) breakouts can also be followed by some selling pressure because of people stuck at higher levels wanting to get out.
Post the kind of rejection we have seen at around 118, there could be some retracement, or sideways consolidation, so that necessary launch pad is built for further upmoves. ( If stock is to go higher)
On longer term weekly line chart, attached chart shows a breakout above 75 levels and a high and double top at around 117-119 (from where today’s price action got rejected) and subsequent fall to touch lows of 87, then showing positive divergence in weekly charts and subsequently the recently strong rally.
Daily line chart shows a double bottom at 90 with intervening peak at 108 and the recent upmove shows a breakout of this double bottom pattern with pattern targets of 126. (difference of 108-90 = 18, added to breakout point of 108)… So in next few days the action to watch out for is how stock price behaves at around 108, or slightly below it (as usually retests often go below expected levels before bouncing again)
Following chart shows weekly line chart with breakout above 75 marked and the consolidation between 90-105 marked.
Following chart shows daily line chart with double bottom marked.
The key message here is that major breakout happened above 75 and subsequently it hit fresh all time high and then undergoing consolidation for a long period of time… False breakouts cannot be diagnosed by action of a single day… If we are in investor mode, then better follow weekly charts…
@TradingWithMind I don’t follow control print of tanla.
@giridesh3 I dont follow KMC speciality hosp or other hospital stocks…
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