Technical view: Jai Corp Ltd
The stock of JAICORP has surged about 17% on Wednesday and has recorded huge volumes.
With taking out its prior swing high, on the technical chart, the stock has formed a strong bullish candle and has a smaller wick at the bottom. It bounced back from its 20-day EMA and has surged past the strong resistance level of Rs 140. After falling initially in March, the stock has seen a good recovery of about 50% since its March low. In the last few days, volume has risen and remained above average. The volume today was found to be greater than the 10-day, 30-day and 540-day average volume, thus justifying strong buying interest among the market participants.
Along with its strong price structure, the 14-period daily RSI (69.18) has entered bullish territory. The RSI has climbed above its prior swing high, which is a bullish sign. Moreover, the +DMI is well above the -DMI and ADX point northward, indicating a strong uptrend of the stock. From the volume's perspective too, JAICORP has gained strength as per the On Balance Volume (OBV). The stocks trades above all key short-term and long-term moving averages and indicate strong uptrend. The Elder Impulse System has indicated a fresh buy signal in the stock.
On YTD basis, the stock has gained over 21% and has outperformed most of its peers. In a short period of one month, it has surged over 34%. Considering its strong price structure, coupled with above-average volume and bullish technical parameters, we expect JAICORP to trade higher in times to come. With its bullish characteristics, the stock presents a good opportunity for swing trading and can test the levels of Rs 160, followed by Rs 165 in short to medium term. Positional traders/ short term traders have a favourable risk-reward ratio as per the technical analysis.
About the Author
Start Investing Now!
Open Free Demat Account in 5 mins