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Ador Welding stock price which is part of the S&P BSE Smallcap index hit a record high of Rs 1,038 on 22 September 2022, but failed to hold on to the momentum.

The stock took support above the 50-WMA on the weekly charts in December and then again in March 2023. The recent momentum in the stock price helped the stock to break out from the falling trendline resistance placed around Rs 900.

The stock rose more than 6% in a week and nearly 10% in a month, data showed.

Medium-term investors could look at buying the stock now or on dips for a possible target towards 1200 in the next 6 months, suggest experts.

The Relative Strength Index (RSI) is placed at 70.4. RSI above 70 is considered overbought. This implies that stock may show pullback, Trendlyne data showed. MACD is above its center and signal Line, this is a bullish indicator.

The stock could see some profit-taking as it is trading near overbought levels. As long as the stock is able to hold on to Rs 700 bulls have a chance to bounce back.In terms of price action, the stock is trading well above most of the short and long-term moving averages such as 5,10,30,50,100 and 200-DMA on the daily charts.

“Ador Welding stock price started its up move from Rs 235 (October 2020) to 852 (November 2021), trading above averages and with Super Trend in the positive mode. Thereafter, the stock consolidated between Rs 580 and Rs 900 from July 2021 to August 2022,” Bharat Gala, President – Technical Research, Ventura Securities, said.

“The up move again resumed, and the stock started trading above averages making a high of Rs 1,038 in September 2022. A weekly bullish candle, supported by volumes has been formed and stock has given a pattern breakout making a high of Rs 995,” he said.

“Aroon up & down, KST, and William % R Indicators confirm strength in the trend. The possible targets are Rs 1,200-1,500,” recommends Gala. “If the stock price corrects downwards the buy levels are Rs 863-810 — Rs 755-725. A stop loss to be observed in the trade is Rs 710,” he added.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)