Chalet Hotels sees a falling trendline breakout! Time to buy?

CHALET has soared over 2% during the early Wednesday trade.

The stock of Chalet Hotels Ltd registered a breakout from its falling trendline during Wednesday’s trading session. It is currently displaying strong bullishness and has soared over 15% in just 8 trading sessions. On Wednesday, the stock gained over 2% and recorded above-average volumes. Interestingly, the volumes have risen in the past few days and are above 10-day and 30-day average volumes. Increasing volumes demonstrate good buying interest in the stock.

The technical parameters, too, add some positive points for this stock. The 14-period daily RSI (63.08) indicates strong strength in the stock. The On Balance Volume (OBV), too, indicates good strength from the volume’s perspective. The MACD is well above the zero line and signal line and shows good upside momentum. The Edler Impulse System maintains a buy signal while TSI and KST show bullishness. The Relative Strength (RS) is in positive territory, suggesting an outperformance of this stock against the broader market. The stock is currently above all its key moving averages and all the moving averages indicate bullishness at every time timeframe.

On a YTD basis, the stock has generated over 45% returns and has outperformance most of its peers. Analyzing the above points and its price structure, the stock is expected to be trading higher in the upcoming days. It has the potential to test the lifetime high level of Rs 332 and can even go further if the market shows good strength in the medium term. Also, the 20-DMA level of Rs 300 should be keenly watched, as any fall below this level shall induce weakness in the stock. It provides good swing trading opportunities for the short and medium-term and traders should miss out on this stock.

Chalet Hotels is a major player in the hotel industry. With a market capitalisation of about Rs 6400 crore, it is one of the strongest growing midcap companies in its sector.