This stock which has gained over 2750% meets the trend template of Mark Minervini

This stock which has gained over 2750% meets the trend template of Mark Minervini

by 5paisa Research Team Last Updated: Apr 04, 2022, 03:33 PM IST

In the last week of March 2020, the stock of Tanla Platforms Limited has marked the low of Rs 37.10 and thereafter marked the sequence of higher tops and higher bottoms. From the low of Rs 37.10, the stock has gained nearly 2765% in just 82 weeks.

After registering the high of Rs 1030 as of the weekend of March 2021, the stock has slid into the period of consolidation. During this consolidation phase, the volume was mostly below the 50-day average volume, which suggests its routine decline after a robust move. This consolidation of 32-weeks resulted in the formation of ascending triangle pattern on the weekly chart.

In the current week, the stock has given a breakout of 32-weeks ascending triangle pattern along with above 50-weeks average volume. The stock has formed a sizeable bullish candle on breakout week, which adds strength to the breakout. On Friday, the stock has hit the upper circuit.

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 15 trading sessions, the stock is trading above its 200-day moving average.

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 290% above its 52-week low and currently, it is trading at an all-time high.

In the last couple of trading sessions, 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.

Talking about the indicators, the 14-period weekly RSI is currently quoting at 67.89 and it is trading above its 9-week average. The weekly RSI is in a rising trajectory. On the weekly timeframe, ADX is 20.42 and suggests that the trend is yet to be developed. Directional indicators continue in the ‘buy’ mode as +DI continues above –DI. The weekly and daily MACD stays bullish as it is trading above its short and long-term moving averages. The daily MACD histogram is suggesting a pickup in upside momentum.

This technical evidence indicates a strong upside in the coming weeks. As per the measure rule of ascending triangle pattern, the first target is placed at Rs 1240, followed by the Rs 1325 level.

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SENSEX
52,982.62
-178.66 (-0.34%)
Nifty 50
15,795.05
-37.00 (-0.23%)
Nifty Bank
33,621.80
-189.45 (-0.56%)

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