Aegis Logistics: Technical breakout and bullish momentum

Aegis Logistics Ltd. operates in the provision of supply chain management services to oil, gas, and chemical industries, with segments including the Liquid Terminal Division and Gas Terminal Division. Founded on June 30, 1956, the company is headquartered in Mumbai, India.

Technical analysis

A detailed analysis of Aegis Logistics stock performance since February 28, 2022, reveals a compelling long-term technical continuation pattern. This pattern is characterised by a consolidation phase in the broader range of Rs 410 on the higher side and Rs 280 on the lower side. This consolidation zone is supported by the 200-day moving average (DMA) and a retracement of nearly 50% from the previous rally in the form of three wave corrective pattern method, hinting at the potential for a significant price movement in the near term.

Stock performance

In today’s trading session, Aegis Logistics stole the spotlight, surging impressively by more than 9% with robust above-average trading volumes exceeding 4.73 million shares, confirming a breakout of the long-term continuation pattern.

Recent data showcases that Aegis Logistics Ltd. has not only breached the lifetime high of Rs 410.50 but also achieved an intraday high of Rs 431.80, closing above the entire consolidation period at Rs 426.70. Closing above the trendline breakout level of Rs 403 solidifies this breakout, presenting an attractive opportunity for discerning swing investors. The projected target for this pattern is around Rs 525, indicating a substantial surge of more than 30% from the breakout point.

Future outlook

The bullish sentiment is bolstered by the close above the Supertrend (ATR 10, Factor 1), confirming a strong momentum in the stock. With momentum indicators indicating positivity, both momentum traders and swing investors have compelling reasons to consider Aegis Logistics for strategic investment. As the company continues to ride the wave of bullish momentum, investors seeking promising opportunities in the financial market can find potential in Aegis Logistics Ltd.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.