Fine Organic Industries meets the trend template of Mark Minervini

Fine Organic Industries meets the trend template of Mark Minervini

by 5paisa Research Team Last Updated: 2022-02-25T18:42:03+05:30

Since the last couple of weeks, the stock has outperformed the frontline indices.

The stock of Fine Organic Industries after registering an all-time high of Rs 4178.25, entered into a counter-trend wherein it took support around its rising 100-DMA. This was not the first time the stock had taken support around its 100-DMA, in fact, this was the fourth time since September 2021, that it has taken support around this moving average.

Recently, the stock has logged a resolute breakout from the past three weeks' consolidation which has taken a shape of a triangular pattern, signalling a resumption of up-move and offering fresh entry opportunities. Further, this breakout was supported by a robust volume of nearly 5 times of 50-days average volume, indicating strong buying interest by market participants.

Currently, the stock is meeting the criteria of Mark Minervini's trend template. The current market price of the stock is above the 150-day (30-week) and the 200-day (40-week) moving averages. The 150-day moving average is above the 200-day moving average. The 50-day (10-week) moving average is also above both, the 150-day as well as 200-day moving averages. It is also meeting Guppy Multiple Moving Average (GMMA) set up by Daryl Guppy.

Since the last couple of weeks, the stock has outperformed the frontline indices. Also, it has relatively outshined Nifty 500 with a decent margin. The relative strength comparison with Nifty 50 and Nifty 500 is marking a higher high.

As the stock is trading at a fresh all-time high, all the trend indicators are showing that the uptrend continues. The stock's Relative Strength Index (RSI) has reached its highest value in the last 14-days and above its prior swing high, which is a bullish sign. Also, it is above the 60 mark. In addition to this, the RSI has also witnessed the breakout of triangular pattern. The daily MACD stays bullish as it is trading above its zero line and signal line. The MACD histogram is suggesting a pickup in the upside momentum.

Considering the robust technical structure of the stock we believe it is likely to continue its northward journey. On the downside, the 50-DMA is likely to provide the cushion in case of any immediate decline. The 50-DMA is currently placed at Rs 3817.67 level.


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