Based on technical analysis, BMW Industries & Jubilant Pharmova are identified as upside potential stocks. Both stocks have displayed promising structures and technical setups, including price volume contraction, and the potential to bounce back and breakout. Currently trading at Rs 65.50 and Rs 731.25 respectively, their price aligns with positive signals from technical indicators like RSI and ADX, suggesting a likely breakout scenario.
The daily chart of BMW Industries Ltd
On the daily chart, BMW Industries is presently showing a promising picture; the stock price is bouncing from 50-day EMA and approaching resistance marked on the chart. The stock price may resume its strong momentum-up in the coming trading sessions if it manages to cross and close above the resistance marked, with the support of decent volume.
The stock price is currently trading above its 50-day EMA, suggesting it is likely about to turn short-term bullish once more after the signs of a breakout. The stock appears mild bullish when one looks at the Relative Strength Index, which is now trading at 63. The ADX of 10 indicates the present state of price momentum, which is moving with normal momentum.
In the event of a retracement, it is essential to monitor key support levels, particularly at a 50-day EMA. The minor upper resistance is Rs 70 and if the stock closes above 52-week high level, then it may consistently trade above current levels.
BMW Industries Ltd. engages in the manufacture of steel items.
The daily chart of Jubilant Pharmova Ltd
Jubilant Pharmova Ltd’s current performance is indicated by a favourable technical setup. The company’s shares are now trading at Rs 731.25 and may start the uptrend from the current levels as it is trading on the support level likely to bounce back. The stock price is currently trading above all the long-term important moving averages and is likely to bounce from the 50-day EMA.
The stock is trading above its all-important moving averages, and it is expected to find support near on 50-day EMA. The Relative Strength Index is trading near neutral levels at 48. This implies there may be potential for an increase in stock price strength. The ADX, now around 15, shows a low level of momentum and directional strength.
The level at the 50-day EMA serves as a crucial indicator for corrective movement, and the overall market structure favours traders if the stock sustains the current level and trades above it.
Jubilant Pharmova Ltd. engages in the provision of basic organic chemicals.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
Published on: Jul 18, 2024, 6:27 PM IST
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