Max Healthcare Institute meets the trend template of Mark Minervini
From the listing price, the stock of Max Healthcare Institute Limited has gained 278.20% in 56 weeks. After registering the high of Rs 402.60, the stock has witnessed minor throwback along with low volume. The throwback is halted near the 23.6% Fibonacci retracement level of its prior upward move and it coincides with the 20-week EMA level.
In the current week, the stock has given stage 2 cup pattern breakout. The length of the cup pattern was 15-weeks and the depth of the pattern was about 20%. This breakout was confirmed by above 50-weeks average volume. In addition, the stock has formed a sizeable bullish candle on breakout week, which adds strength to the breakout.
Since the last couple of weeks, the stock has outperformed the frontline indices. Also, it has relatively outshined the Nifty 500 with a decent margin. The relative strength comparison with Nifty 50, Nifty Pharma and Nifty 500 is marking the higher tops and higher bottoms.
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. Since the last 135 trading sessions, the stock is trading above its 200-day moving average. Currently, the stock is trading above its 200-DMA by 39.40%.
The 50-day (10-week) moving average is also above both 150-day and 200-day moving averages. The current stock price is above the 50-day moving average. Also, the current stock price is nearly 222% above its 52-week low and currently, it is trading at an all-time high.
As the stock is trading at its 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, which is a bullish sign. Also, it has managed to close above its prior swing high. Recently, the MACD line crossed the signal line, and the histogram became green.
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 28.4 on a daily chart and 38.94 on a weekly chart. Generally above 25 levels considered as the strong trend. In both time frames, the stock is meeting the criteria.
Talking purely about the trading levels, as per the measure rule of the cup pattern, the upside target is placed at Rs 485 level. On the downside, the 20-day EMA will act as strong support for the stock.
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