A phase where the stock price stayed contained inside these levels, neither breaking down nor rallying, was indicated by the weekly chart of SBI Card’s stock, which consolidated within a range of roughly Rs 680 to Rs 750. This consolidation phase took place close to a possible reversal zone, with Rs 680 serving as the consolidation’s lower boundary.
These areas frequently signal that a turning point in the stock’s trajectory is approaching, where it may resume its upward trajectory or reverse its previous downward trajectory.
SBI Card created a triple bottom pattern during this consolidation, a bullish reversal structure that suggests sturdy support at the lower end of the range. This pattern further supported the possibility of an upward rise, as did bullish divergence on the daily Relative Strength Index (RSI). The stock’s price may have been falling or staying flat, but momentum was building in the opposite direction, indicating increasing purchasing pressure, according to bullish divergence on the RSI.
SBI Card effectively broke out of the Rs 750 zone after this consolidation and has continued above it, demonstrating the strength of the breakout. The stock currently has a target price of Rs 900 and is positioned for additional upward growth. For possible upside gains, investors are recommended to adopt a “buy on dip” strategy, entering the stock at prices up to Rs 770.
In order to mitigate risk, a stop-loss should be placed at Rs 740 at the end of each trading day. This will safeguard investors from losing money should the stock lose momentum. For traders and investors, the triple bottom pattern, RSI divergence, and breakout support this technical setup, which makes the SBI Card a favorable long position.
Ambuja Exports from Gujarat (GAEL)
Gujarat Ambuja Exports (GAEL) has shown that it can withstand negative pressure by testing and establishing a strong support level in the Rs 130–132 band over the course of the last year.
A noteworthy development occurred recently when GAEL broke above a bearish trendline that had been limiting its movement for the previous four to five months. This breakout has also been sustained.
This implies a fundamental change in the perception of the stock by the market. Additionally, the weekly Relative Strength Index (RSI) has exceeded its own negative trendline, indicating short- to medium-term positive momentum on the indicator front.
We have recommended traders and investors to start long positions in GAEL around the Rs 140–144 region in light of these technical indicators. With an upward goal of Rs 174, we are expressing our optimism about the stock’s future growth. We advise putting a stop-loss order close to Rs 126 on a daily closing basis in order to limit risk and guard against unfavorable market swings.
Organic Laxmi Industries
Laxmi Organic Industries has been trading in a comparatively small range of between Rs 235-270 for the last 7-8 weeks, which suggests a period of stabilization. The stock, however, recently broke out of this range and is currently trading close to the Rs 280 level, suggesting that its trend may be changing.
In addition to breaking a bearish trendline that has limited the stock’s movement for almost three years, this breakout is also notable because it coincides with increasing volume. This breakout is a noteworthy event that may indicate a shift in the stock’s long-term trend because of how long it took to happen.
Furthermore, during this time, the momentum indicator Relative Strength Index (RSI) has continuously been above the 50 mark. This shows that the stock has maintained strong momentum despite the consolidation, which is a sign of strength.
We advise taking a long position in Laxmi Organic Industries inside the Rs 305–310 price range in light of these technical considerations. Given the possibility of additional gains after the breakout, the upside target is established at Rs 350. A stop-loss should be placed on a daily closing basis close to Rs 286 in order to efficiently control risk