This stock has gained 390% and meets the trend template of Mark Minervini

This stock has gained 390% and meets the trend template of Mark Minervini

by 5paisa Research Team Last Updated: Dec 08, 2021, 05:38 PM IST

The stock of Mayur Uniquoters Limited has formed a spinning top candlestick pattern in the last week of March 2020 and thereafter marked the sequence of higher tops and higher bottoms. From the low of Rs 119.30, the stock has gained 390% in 89 weeks.

On Wednesday, the stock has given a cup pattern breakout. The depth of the cup pattern is 23% and its length is 22-weeks. This breakout was confirmed by robust volume. This indicates further bullish momentum.

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 18 trading sessions, the stock is trading above its 200-day moving average. Currently, it is trading above its 200-day SMA by 26%.

The 50-day moving average is also above 200-day moving averages. The current stock price is above the 50-day moving average. Also, the current stock price is nearly 133% above its 52-week low and currently, it is trading at a 52-week high. In 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 and Nifty 500 is marking the higher high.

As the stock is trading at its 52-week high, all the trend indicators are showing that the uptrend will continue. The relative strength index (RSI), which is a momentum indicator, is trading in a bullish territory in all the important time frames. On the weekly chart, the 14-period RSI is currently quoting at 71.98 and it is in rising mode. The weekly ADX is reasonably good at 20.91 levels. The +DI is above the -DI and ADX on both weekly and the daily chart show strength in the trend.

Talking purely about the trading levels, the 13-day EMA will act as strong support for the stock. According to the measure rule of cup pattern, the first target is placed at Rs 672 level.

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