Elgi Equipments sees an inside bar breakout; Is the stock ready for an uptrend?
Shares of Elgi Equipments has surged over 5% today.
With strong momentum, the stock has registered a breakout from its inside bar candle and has also crossed above the 400-mark. Moreover, a consolidation breakout has been seen in a lower timeframe. The stock was undergoing strong bullishness and had soared over 55% from its prior swing low of Rs 248.70. Thus, the price structure is quite bullish.
Interestingly, the technical oscillators and parameters are also in line with the stock’s bullishness. The 14-period daily RSI (70.98) is in the super bullish zone. It has been trading in the bullish zone for the past six trading sessions. Meanwhile, the ADX (25.55) indicates a strong trend strength in the stock. The MACD histogram continues to rise and sees a strong uptrend. The On Balance Volume (OBV) remains elevated and indicates strong strength from the volume’s point of view. The stock is above all the key moving averages and all the moving averages indicate bullishness. The KST and TSI indicators, too, maintain a bullish view.
Today, the stock has recorded above-average volume which is greater than the 10-day and 30-day average volume. It has outperformed its peers and the broader market lately and is expected to trade higher in the coming days. As per the technical chart, the stock has the potential to test the level of Rs 422 in a short period, followed by Rs 465 in times to come. Considering the above factors, downside risk seems to be limited and the stock is expected to do well in the medium term.
Elgi Equipments is a machinery manufacturer having its product applications across various industries like food processing, pharmaceutical, automotive garages etc. With its diversified business, With a market capitalization of about Rs 12668 crore, it is one of the strong growing midcap companies in its sector.
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