Breakout stocks of the day: Ramco Industries and Manali Petrochemicals

With price volume support, Ramco Industries and Manali Petrochemicals have strong bullish breakout potential. The stock price has displayed a symmetrical triangle and peanut chart pattern breakout, and is presently trading at Rs 244 and Rs 85. The breakout corresponds to the RSI, ADX, and other technical analysis indicators.

Ramco Industries Ltd

Dailly chart of Ramco Industries Ltd 

Shares of Ramco Industries Ltd are currently exhibiting a robust bullish momentum on the daily chart, marked by a compelling symmetrical triangle breakout. This pattern is poised to be confirmed by the week’s close, supported by a strong bullish candle. Buyers are actively participating in the stock, evident from today’s substantial daily volume, providing ample strength for breakout sustainability.

The Thursday trading session opened at Rs 228 and surged to a day high of Rs 248. After 3 months of consolidation, the stock has convincingly breached the upper resistance of the pattern, signalling a potential trend continuation.

The stock’s current price surpasses previous highs, propelled by an increase in volume during the breakout. This breakout positions Ramco Industries for a positive trend shift, with accumulated volume suggesting further growth soon. The bounce from the lower trendline underscores the stock’s effort to establish new highs. The relative strength index entering the 65-80 range and a robust ADX at 28 on the daily chart indicates a high directional strength favouring a continued uptrend.

In case of a retracement, key support levels to monitor include the 20-day EMA and 50-day EMA. The minor upper resistance is uncertain, and the overall favourable structure, as the stock consistently trades above crucial moving averages, indicates a sustained long-term upward trend.

Ramco Industries Ltd is a holding company, which engages in the manufacture and sale of building materials.

Manali Petrochemicals Ltd

Dailly chart of Manali Petrochemicals Ltd

Manali Petrochemicals’ stock is currently characterized by a strong green daily candle, confirming a breakout from the peanut chart pattern accompanied by a notable volume spike. Opening at Rs 79 on Thursday, the stock reached an intraday high of Rs 87. This breakout follows a couple of weeks of consolidation, suggesting a resumption of the bullish trend.

The confirmation of the breakout, marked by a strong upthrust in the daily candle, indicates a continuation of the bullish momentum. Trading at its 52-week high, the stock may experience a rapid ascent following today’s sustained levels. The breakout is further supported by a price volume surge exceeding ordinary trading day volume.

The relative strength index within the 65-80 range hints at a potential sharp rise in the stock price, especially as it approaches the 80 level. The ADX, rising at 39, signifies high directional strength to sustain the uptrend. The 50-day EMA serves as a fundamental support level during corrective movements, with the overall structure favouring traders as the stock consistently trades above major moving averages.

Manali Petrochemicals Ltd engages in the manufacture and sale of petrochemical products.

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.