The stock with a market capitalisation of more than Rs 13,000 crore hit a 52-week high of Rs 2022 on April 29, 2022, but it failed to hold on to the momentum. The sock took support for around Rs 1,065 on June 20 and then bounced back.
The stock closed at Rs 1,648 on 14 October 2022 which translates into an upside of over 50 per cent from the recent low.
Strong price action post June helped the stock to regain momentum and climb above crucial moving averages. Short-term traders can look to buy the stock now or on dips for a possible target around its April 2022 highs, suggest experts.
The stock also recorded a breakout from the neckline of a head and shoulder pattern on the weekly charts which augers well for the bulls. This is the second breakout from the said pattern since September.
The stock has rallied more than 8 per cent in a week, and over 25 per cent in the last three months, Trendlyne data showed.
It is trading above crucial short- and long-term moving averages placed at 5,10,30,50,100 and 200-DMA which is a positive sign for the bulls.
Post the uptrend till October 2021, the correction was listless as the stock price of Angel One did not breach its crucial support placed at Rs 1,000-1,170 level.
“The stock in the first week of September 2022 surpassed the shoulder level (Rs 1,555.70) of Head and shoulder pattern and making it fail. Now, this indicates a continuation of the prior uptrend,” Vidnyan Sawant, AVP – Technical Research, GEPL Capital, said.
“The upmove in the prices was accompanied by rising volumes while the downswing was followed by lower volumes this tells that the supply is less as compared to demand,” he said.
Prices are currently trading above the 20-week SMA which has acted as strong variable support and resistance for the immediate upswings and downswings.
“On October 4, 2022, prices created a strong bullish gap with high volumes, which can be considered as a breakaway gap,” he said.
“While on the daily timeframe, Bollinger Band has started to expand which points towards the rising volatility of the prices. RSI on the daily as well as on weekly timeframe is above 50 mark, reflecting rising momentum in the prices,” added Sawant.
“Going ahead, we expect the prices to move higher till its record high level till 2022 where the stop loss must be Rs 1,495 on the closing basis,” recommends Sawant.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)