Jagsonpal Pharmaceuticals meets the trend template of Mark Minervini

Jagsonpal Pharmaceuticals meets the trend template of Mark Minervini

by 5paisa Research Team Last Updated: Feb 18, 2022, 04:43 PM IST

The stock was locked in the upper circuit on Friday and it has witnessed the highest single-day volume ever!

The stock of Jagsonpal Pharmaceuticals should go down in the history books as it managed to reward shareholders with a multifold return from the March 2020 lows. Shares of the company have delivered a staggering over 11X returns from the low of March 2020 to August 2021 high. After this magnificent rise, the stock formed a shooting star like candlestick pattern (not a perfect textbook one) as on weekended August 06, 2021, at the all-time high levels and thereafter corrected swiftly in the next three weeks.

Despite this swift correction, there was not much damage done on the long-term structure of the chart of the stock as it kept oscillating in a broad range with one exception when it had registered a panic low of Rs 123. And this oscillation took shape of a triangular pattern.

Recently, the stock has witnessed a breakout of this triangular pattern on the weekly chart. Further, this breakout was supported by a robust volume of nearly 4 times of 50-weeks average volume, indicating strong buying interest by market participants. The 50-weeks average volume was 12.59 lakh while in the current week the stock has registered a total volume of 49.56 lakh.

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 trading sessions, 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-weeks, which is a bullish sign. Also, it is above the 60 mark. Moreover, MACD has given a fresh buy signal on the weekly chart.

The Average Directional Index (ADX), which shows trend strength, is as high as 27.06 on a weekly chart. Generally, above 25 levels are considered as the strong trend. Furthermore, the +DMI is above the -DMI and ADX.

Considering the robust technical structure of the stock we believe it is likely to continue its northward journey over the coming days. This reading will lose relevance if the price slips below Rs 156.

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SENSEX
54,208.53
-109.94 (-0.20%)
Nifty 50
16,240.30
-19.00 (-0.12%)
Nifty Bank
34,163.70
-138.20 (-0.40%)

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