Chart Check: 20% rally in a month! This IT software firm likely to cross 500 levels to hit fresh 52-week high

Latent View Analytics Ltd, part of the IT industry, has rallied by about 20% in a month to hit a fresh 52-week high in September and chart patterns suggest that the rally may not be over yet.

Short-term traders can look to buy the stock for a possible target towards 500 levels in the next 3-4 weeks, suggest experts.

The stock rose from Rs 381 as of 4 August 2023 to Rs 455 recorded on 5th September which translates into an upside of 19.4% in a month.

The stock after hitting a record high of Rs 755 on 26 November 2021 failed to hold on to the momentum. It started its corrective phase and found support above 300 levels.

The stock took support above 300 levels once in June 2022, December 2022, and then again in March 2023.

The stock broke below the 50-day Moving Average in May 2022 and started moving in a narrow range. The stock bounced back after hitting a low of Rs 311 on 28th March 2023.

On the upside, the stock found resistance around 420 while on the downside, levels above 300 acted as a strong support on the weekly charts. The stock witnessed a breakout from the range last week. It closed at 455 on 5th September 2023.The daily Relative Strength Index (RSI) is at 69.1. RSI below 30 is oversold and above 70 is considered overbought, Trendlyne data showed. The daily MACD is above its center and signal Line, this is a bullish indicator.

“Following a correction phase that began in July 2021, the Latent View stock has firmly established a foundational range between 320 and 420. Recent observations indicate a bullish shift in the stock, characterized by successive higher highs and lows,” Omkar Patil, Technical Research Associate at GEPL Capital, said.

“Notably, the stock price has advanced beyond this consolidation bracket, crossing the 420 thresholds,” he said.

This movement, accentuated by increasing trading volumes, signals the commencement of a bullish trajectory. This breakout can be characterized as a Rectangle pattern transition.

“Furthermore, the stock has consistently traded above the 12-week Exponential Moving Average (EMA), a well-regarded benchmark for dynamic support,” highlights Patil.

Complementing this bullish trend, the Momentum indicator, RSI, displays a pattern of Higher Highs & Higher Lows, indicating strengthening momentum.

“Going ahead we expect the prices to move higher till 550 level where the stop loss must be 420 strictly on the closing basis,” he recommends.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

Source link

Leave a comment