HBL Power (cmp 267)daily chart shows a flag like consolidation for nearly a month. For a day there was a shakeout kind of move below the flag and then the stock price moved within the consolidation range. On Friday it has made a breakout above the falling trendline and closed above it. We need to see some follow up move to this breaout, to conclude that it is genuine. ( These days there are a lot of false breakouts and retests etc before a major upmove from consolidation in a stock starts.)
Coming to the prior rally in HBL, it was a very fast rally from 167 to 294 , nearly a 75 % upmove within less than a month and these kind of moves need cooling off. Here it seems to have taken the form of a flag like consolidation.
If this flag like pattern does play out, then potential target can be in vicinity of 390. (flag pole from 170-295 = 125, breakout point 265. Adding the distance of flagpole to breakout point we get 265+ 125 = 390. However the upmove can take time and may even see consolidations in between, if at all it does play out.
disc: invested as disclosed before.
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