What’s up for Aegis Logistics after it registers a triangle pattern breakout? Know the target levels here

resr 5paisa Research Team

Last Updated: 14th December 2022 - 03:28 am

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AEGISCHEM registers a triangle pattern breakout on July 21.

The stock of Aegis Logistics Ltd soared nearly 7% on Thursday amid strong buying interest from the market participants. With this, it has registered a strong breakout from its triangle formation on the technical chart, which is also accompanied by above-average volumes. Interestingly, after 16 trading days of consolidation, the stock has finally seen a strong upside and is now above all the key moving averages. Such a breakout is deemed positive and has a positive outlook for the short term.

The technical parameters are also in line with the stock’s bullishness. The 14-period daily RSI (67.71) is in the bullish zone and demonstrates strong strength in the stock. The MACD has indicated a bullish crossover and describes a positive trend. The +DMI is well above the -DMI. The OBV is at its peak, showing strong strength from the volume’s perspective. The Elder Impulse System has indicated a fresh buy, while TSI and KST indicators have seen an improvement.

In one month, the stock has risen over 10%. It has outperformed its peers and is well off from its prior swing lows. Considering this bullish equation, we can expect the stock to be trading higher in times to come. It has the potential to test the level of Rs 250, followed by Rs 265 in the short to medium term. However, a fall below its 200-DMA level of Rs 215 shall be considered negative. Overall, the downside risk seems to be limited, and the focus must be on the upside. It provides good swing trading opportunities and traders mustn’t miss out on spectacular action.

Aegis Logistics Limited is engaged in providing logistics and supply chain services to the oil, gas and chemical industries and allied industries. With a market capitalisation of about Rs 7500 crore, it is one of the strong growing companies in its sector.

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