The stock hit a 52-week high of Rs 549 on 7 February 2022, but it failed to hold on to the momentum. The stock bounced back after hitting a low of Rs 345 on 12 May 2022.
Short-term traders who missed the rally can look at buying the stock now or on dips for a possible target above Rs 600 in the next 3-4 weeks, suggest experts.
The stock which gave a breakout from a Symmetrical Triangle pattern in December on the weekly charts was seen retesting the neckline of the pattern and then saw a quick bounce back.
Triangles are formed when the market loses interest in a counter, but then picks up momentum. The stock was seen in a mild downtrend before breaking out from the falling trendline.
A symmetrical triangle is commonly considered a continuation pattern.
In terms of price action, the stock price is trading well above the short and long term moving averages of 5,10,30,50,100 and 200-DMA which is a positive sign for the bulls.
The Relative Strength Index (RSI) is at 63.3. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is above its center and signal line, this is a bullish indicator.
“KEC International has a change in its polarity around the level of Rs 357, which shows the rising bullish sentiment behind the prices,”
Patil, Technical Research Associate at GEPL Capital, said.
“The stock has retested the symmetrical triangle pattern which it gave breakout in the first week of December 2022, indicating continuation of prior uptrend,” he added.
“The breakout is confirmed as it is accompanied by higher volumes. The RSI on the weekly timeframe have shown a breakout too which reflects strong momentum of the prices,” highlighted Patil.
“Going ahead, we expect the prices to go higher till the level of Rs 625 in the short term, where the stop loss must be Rs 450 on the closing basis,” he recommended.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)—