The breakout has opened room for the stock to head towards 7000 levels in the short to medium term, suggest experts.
The stock rallied from Rs 5006 as on 13 October 2023 to Rs 6614 recorded on January 15, 2024, which translates into an upside of over 32%. It rose more than 9% in a week.
The momentum helped the stock to hit a fresh record high of Rs 6788 on 15th January 2024. The stock witnessed a breakout from the saucer pattern in December 2023 on the weekly charts and has been sustaining above the same.
The neckline of the pattern was placed above 6100 levels. The stock briefly tested the 20-DMA on the daily charts and bounced back.
In terms of price action, 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 on the daily charts.
The daily Relative Strength Index (RSI) is at 71.5. RSI above 70 is considered overbought. This implies that the stock may show a pullback. The daily MACD is above its center and signal Line, this is a bullish indicator.
Agencies“Coforge stock is currently demonstrating strong momentum, reaching new all-time highs. Recently, the stock experienced a breakout with a Saucer pattern on the weekly charts, accompanied by significant volume confirmation,” Vidnyan S. Sawant, Head of Research at GEPL Capital Ltd, said.
“Following the breakout, there was a retest of the breakout level, forming a CIP (Change in Polarity) pattern, indicating a robust positive undertone for the medium to long term,” he added.
Noteworthy is Coforge’s stock’s consistent reliance on key moving averages, particularly the 13-week Exponential Moving Average (EMA), suggesting a reliable mean reversion pattern.
On the weekly scale, the Relative Strength Index (RSI) has been consistently above 60, indicating the establishment of strong positive momentum.
“Considering these structural developments, the overall outlook for Coforge remains bullish, with expectations of further upward movement targeting the 7200 level. To manage risks, it is advisable to set a stop-loss at 6070 based on closing values,” recommended Sawant.
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(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
