Breakout soon candidate: Keep this tyre stock on your radar
![Breakout soon candidate: Keep this tyre stock on your radar Breakout soon candidate: Keep this tyre stock on your radar](https://storage.googleapis.com/5paisa-prod-storage/files/2022-07/image_5_7.jpg)
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Last Updated: 13th December 2022 - 12:35 pm
Shares of Balkrishna Industries gained over 1.5% on Tuesday.
Balkrishna Industries Limited is engaged in manufacturing a range of off-highway tires. These tires are mainly meant for agricultural, industrial and construction, earthmover and port, mining and all-terrain vehicles (ATV).
The stock of Balkrishna Industries gained over 1.5% on Tuesday. It is on the verge of a breakout of nine-month consolidation which has taken a shape of a triangular pattern, signalling the resumption of up move and offering fresh entry opportunities. The stock has jumped over 13.5% from its recent swing low which was registered in June.
Technically, the stock is trading above its key important moving average like 20, 50, 100 and 200-DMA. The daily 14-period RSI is trading in the bullish territory after forming a base at the nine-period moving average thus supporting the positive bias. Furthermore, the daily MACD is pointing northward while sustaining above its nine-period average which further reaffirms positive bias in the stock. Also, the MACD histogram shows bullish momentum is picking up.
The Elder Impulse System has formed a series of bullish bars and the stock is trading above the Anchored VWAP, anchored from the all-time high level. The +DMI is above -DMI and ADX. Improved strength in ADX is also a positive sign for the stock.
Going forward, keep a close eye on the level of Rs 2330 as a close above this level would result in a breakout of triangular pattern and the stock can see a quick move towards levels of Rs 2460-2540 in the medium term. Meanwhile, on the downside, the level of Rs 2200 is likely to act as immediate support for the stock and a close below the level of Rs 2200 would negate the bullish view on the stock.
The stock has gained more than 3.5% in the last week and in the last one month it is up by over 6%.
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