Breakout stocks of the day: Hero MotoCorp and State Bank of India

Hero MotoCorp and State Bank of India have displayed a strong positive breakout with price volume support. The stock price is currently trading at Rs 3,879 and Rs 624, respectively. Both the scrips witnessed a formation of flag & pole and an ascending triangle chart pattern. The RSI, ADX and other parameters of technical analysis are in sync with the breakout.

Hero MotoCorp Ltd

Daily chart of Hero MotoCorp Ltd 

Hero MotoCorp’s stock is trading with a doji candle as the day progresses to continue the breakout of a chart pattern called flag and pole.

The stock witnessed a gap-up opening at Rs 3,878, jumped to its day high of Rs 3,905, and touched its day low of Rs 3,838. The stock had been in an uptrend for a long time before the formation of a pattern, which formed a pole.

Hero MotoCorp has formed a flag and pole chart pattern with its breakout to continue the bullish trend. The stock price is trading at its 5-year high and may consolidate for a while to cool down this breakout as the doji candle suggests the indecision. The stock continued to trade at its multiyear high with high momentum as volumes increased. The stock price also witnessed a price volume breakout on Wednesday, making this breakout strong.

The relative strength index also entered the 65–80 range, suggesting the stock price may continue a strong uptrend ahead. The ADX indicator line is above 40, which shows massive direction strength. The stock price is also respecting the moving average levels as it bounced from the same a few weeks ago.

During any corrective moves, the major support level to watch for is Rs 3,690. The overall structure remains favourable for traders, as the stock continues to trade above all its important moving averages, indicating a sustained upward trend.

The stock has yielded returns of 42.22% in one year.

Hero MotoCorp Ltd engages in the manufacture of two-wheelers.

State Bank of India

Daily chart of State Bank of India 

State Bank of India stock is trading with a small red candle as the day progresses to continue the chart, suggesting the stock is on the verge of a breakout of a chart pattern called an ascending triangle.

The stock witnessed a gap-up opening at Rs 626, jumped to its day high of Rs 627, and touched its day low of Rs 622. The stock has been in a long-term consolidation range.

The State Bank of India has formed an ascending chart pattern with stock prices on the verge of breakout to start a bullish trend. The stock price is trading at its 52-week high and may breakout or reverse from this position, as the clear breakout signs are intact. The volumes are not promising till now, but looking at the volume pattern, they may soon spike to trigger the breakout.

The relative strength index also entered the 65–80 range, suggesting the stock price may start a new strong uptrend ahead. The ADX indicator line is above the 30 mark, suggesting strong directional strength. The stock price is also respecting the moving average levels, as it crossed them and bounced from them a few weeks ago.

During any corrective moves, the major support level to watch for is Rs 605. The overall structure remains favourable for traders, as the stock continues to trade above all its important moving averages, indicating a sustained upward trend.

The stock has given mutibagger returns of 4,040.49% in a decade.

The State Bank of India engages in the provision of public sector banking and financial services as a statutory body.

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.