GNFC meets the trend template of Mark Minervini

GNFC meets the trend template of Mark Minervini

by 5paisa Research Team Last Updated: Dec 11, 2022 - 02:42 pm 35.6k Views
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The stock of Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) has jumped over 500% from the March 2020 lows to an all-time high which was registered on March 04, 2022.

The stock has witnessed a breakout of consolidation pattern in the first half of February 2022 where it witnessed a gap-up opening and within a week surged 24.3% along with robust volume. After this strong up-move in just another week, the stock underwent a consolidation phase wherein. Here it tested low of the breakout candle and once again buying interest was seen around these levels and testimony of this is the long lower shadow. But after some consolidation, the bulls were back in the game and the stock hit a fresh all-time high on March 04, 2022.

As the stock is trading at life time high, it is above all the short and long-term moving averages and meets Mark Minervini’s trend template. It is trading above 40, 30 and 10-weekly averages and all of them are trending up. At the same time, there is the desired sequence. Along with this, the stock is above the 50-weekly average and the 20-period RSI is much above 60-level and is in a super bullish zone. It is also meeting Guppy Multiple Moving Average (GMMA) set up by Daryl Guppy. This structure indicates that the stock is in a clear uptrend.

Since the last couple of trading sessions, it 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.

The stock is clearly on an uptrend and trend strength is extremely high. The Average Directional Index (ADX), which shows trend strength, is as high as 37.16 on a weekly chart. Generally, above 25 levels are considered as the strong trend. Moreover, rising +DMI is showing strength in the trend.

Considering the above factors, the stock is likely to continue its northward journey. While, on the downside, the level of Rs 500 is likely to act as strong support in the medium term.

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