Price Volume breakout witnessed in this midcap metal stock; do you hold it?
RATNAMANI has soared over 4% during the initial hours of Friday’s trading session.
The Indian indices are trading higher amid volatility on Friday. Strong buying is seen in midcap and smallcap stocks while the metal sector is currently the top performer.
This has favoured Ratnamani Metals and Tubes, which is a midcap stock from the metal sector. It has soared over 4% during the initial hours of the trading session. With this, it has registered a price volume breakout from its falling trendline on the technical chart. The volume is found to be greater than the 30-day and 50-day average volume. The spurt in volume is 3 folds. It is inches away from its all-time high level of Rs 1913. It took the support of its 20-DMA for many days and has seen strong buying emerging at lower levels. This year alone, the stock has contributed over 42% returns to the investors’ portfolio. Moreover, its WTD performance stands at 6.69% and MTD at 8.73%.
The technical parameters suggest that the stock is in strong bullish mode. All the momentum oscillators are upward sloping, which is a bullish sign. The 14-period daily RSI (70.18) has entered the super bullish zone. It is currently above its prior swing high level and shows strong strength in the stock. The ADX (28.47) has moved upwards and demonstrates strong trend strength. The MACD had indicated a bullish crossover in the previous trading session. The OBV is improving and indicates increasing buying interest. Overall, the stock has become technically strong and is expected to trade shortly.
Considering the positive price pattern backed by huge volume and bullish technical parameters, we can expect the stock to test its all-time high level of Rs 1913 in short term, followed by Rs 2000 in the medium term. However, a fall below the 20-DMA level of Rs 1745 shall be deemed negative but the chances of that look less as of now. Traders should keep this stock on the watchlist.
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DisclaimerInvestment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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