Breakout stocks of the day: Karnataka Bank and Palred Technologies

With price volume support, Karnataka Bank and Palred Technologies have strong bullish breakout potential. The stock prices have displayed a consolidation breakout, and is presently trading at Rs 272 and Rs 212. The breakout corresponds to the RSI, ADX, and other technical analysis indicators.

Karnataka Bank Ltd

Weekly chart of Karnataka Bank Ltd 

Shares of Karnataka Bank are currently exhibiting a robust bullish momentum on the weekly chart, marked by a compelling consolidation 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 Friday trading session opened at Rs 257, and surged to a day high of Rs 275. 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 Karnataka Bank for a positive trend shift, with accumulated volume suggesting further growth in the near future. The bounce from the lower 20-day EMA underscores the stock’s effort to establish new highs. The relative strength index entering the 65-80 range and a robust ADX at 49 on the daily chart indicate a very high directional strength favouring a continued uptrend.

In case of a retracement, key support levels to monitor include the 20-day EMA and a level of Rs 234. 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.

Karnataka Bank Ltd. is engaged in the provision of banking and financial services.

Palred Technologies Ltd

Weekly chart of Palred Technologies Ltd

Palred Technologies’ stock is currently characterised by a strong green daily candle, confirming a breakout from the consolidation accompanied by a notable volume spike. Opening at Rs 180 on Friday, the stock reached an intraday high of Rs 213. This breakout follows a couple of years 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 trades in the same range. The ADX, rising at 19, signifies low directional strength but it is showing recovery signs. 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.

Palred Technologies Ltd operates as a holding company. The firm engages in the provision of information technology solutions.

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.