acc shares: Stock Radar: Multiple Breakouts! This cement stock could hit fresh record highs in next 4-5 weeks; time to buy? – The Economic Times

lipped from: https://economictimes.indiatimes.com/markets/stocks/news/stock-radar-multiple-breakouts-this-cement-stock-could-hit-fresh-record-highs-in-next-4-5-weeks-time-to-buy/articleshow/94072863.cms

Synopsis​Short-term traders can look to buy the stock now or on dips for a possible target of Rs 2,750 in the next 4-5 weeks, suggest experts. ACC hit a record high of Rs 2,587 on 15 November but failed to hold on to the momentum. The stock closed at Rs 2,406 on September 7, a downside of 7 per cent.

Shares of cement major

ACC

could well hit fresh record highs in the next month after the stock witnessed a breakout from the neckline of an inverted head and shoulder pattern and also a breakout above its falling trend line of the downward sloping channel.

Short-term traders can look to buy the stock now or on dips for a possible target of Rs 2,750 in the next 4-5 weeks, suggest experts.

ACC hit a record high of Rs 2,587 on 15 November but failed to hold on to the momentum. The stock closed at Rs 2,406 on September 7, a downside of 7 per cent.

Bulls remained in control of ACC so far in 2022, which helped the stock narrow the gap between the price and its record high. The stock advanced nearly 6 per cent in a week and more than 13 per cent in the last three months.

The stock bounced back after hitting a low of Rs 1,900 in March this year. It remained volatile, marked as the Head of the Head and shoulder pattern. Two intermediate dips can be observed above Rs 2,000 levels, once in December 2021 and the other in June 2022.

An Inverse Head & Shoulder pattern is the mirror image of the Head and Shoulder pattern and is a bullish signal.

It is defined as three bottoms with the middle bottom significantly lower than the other two bottoms. (Also Read: Heads and shoulders)

ACC

ETMarkets.com

On the price front, the stock is trading above most of the crucial short and long-term moving averages such as 5, 10, 30, 50, 100 and 200-DMA, a positive sign for the bulls.

The Relative Strength Index (RSI) is 74.1. RSI above 70 is considered overbought. This implies that stock may show pullback, Trendlyne data showed. MACD is above its center and signal Line, another bullish indicator.

Stock Radar: This cement could hit a fresh 52-week high in 1 month, says Shitij Gandhi

“At the current juncture, the ACC has managed to surpass above its falling trend line of downward sloping channel and can be seen trading in a rising channel with the formation of the higher bottom pattern,” Shitij Gandhi, Senior Technical Analyst, SMC Global Securities, said.

“ACC made its 52-week high of Rs 2,589 in November 2021. However, since then, prices can be seen trading in downwards sloping channel on weekly charts,” Shitij Gandhi, Senior Technical Analyst, SMC Global Securities, said.

In the recent past, the stock took support at its 100-Days exponential moving average on the weekly interval and has shown recovery from thereon.

“At the current juncture, ACC managed to surpass above falling trend line of the downward sloping channel and can be seen trading in a rising channel with the formation of the higher bottom pattern. On daily charts, a fresh breakout above inverted head & shoulder pattern can also be observed with a rise in volumes,” said Gandhi.

“After multiple breakouts, the stock is expected to carry its momentum towards Rs 2,750 from the current levels in the next 4-5 weeks. A stop loss can be kept at Rs 2,200,” he recommends.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
(Originally published on Sep 09, 2022, 06:30 AM IST)

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