This paper stock which has hit a fresh all-time high, meets the trend template of Mark Minervini
The stock of Seshasayee Paper and Boards has jumped more than 60% from its low of April 2022.
This strong move in the shares of the company has resulted in it hitting a fresh all-time high of Rs 257 on Monday. On the same day, the stock jumped over 5% and touched intraday high of Rs 257 and finally settled at Rs 253.70 on NSE. Volume for the day was greater than its previous trading session and in excess of 2.5 lakh shares.
The scrip has witnessed breakout of Cup and Handle like pattern on the weekly chart in the first week on August 2022 with above average volume. Currently, the stock is trading at a lifetime high and above the pivot point. It is clearly in a confirmed uptrend by making higher highs and higher lows on a weekly chart.
As the stock is trading at a lifetime high, it is above all the short and long-term moving averages. The stock is meeting 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 a desired sequence. Along with this, the stock is above the 50-weekly average and 20-period RSI, is much above the 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 is positive for the stock.
Interestingly, in 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 stock is meeting most of the CANSLIM characteristics. The relative price strength is at 85 which is good indicating the outperformance as compared to other stocks. Buyer demand is evident from recent demand for the stock. EPS strength is improved to 66-level and group rank of 17 indicates it belongs to a strong industry group of Paper and Paper Products. Master score of A is the best.
In the long term the stock has potential to test levels of Rs 300, while in the short term the level of Rs 270 is likely to be tested. Meanwhile, support is seen at Rs 235.
About the Author
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.
Start Investing Now!
Open Free Demat Account in 5 mins