Breakout stocks of the day: Shemaroo Entertainment and HBL Power Systems

With price volume support, Shemaroo Entertainment and HBL Power Systems have strong bullish breakout potential. The stock prices have displayed symmetrical triangle and ascending triangle breakout and are presently trading at Rs 189 and Rs 478. The breakout aligns with positive signals from technical indicators such as RSI, ADX, and other key metrics, reinforcing the likelihood of continued upward momentum.

Shemaroo Entertainment Ltd

Weekly chart of Shemaroo Entertainment Ltd 

Shemaroo Entertainment is currently displaying a sustained bullish momentum on the weekly chart, characterised by a notable breakout from a compelling symmetrical triangle chart pattern. This breakout is supported by the strong volume observed in the previous and this week’s trade, highlighting active buyer participation with substantial weekly volume.

Thursday’s trading session initiated at Rs 189 and reached a peak of Rs 198. After five months of pattern formation, the stock has successfully breached the upper trendline of the pattern, indicating a potential long-term trend continuation.

The current stock price is about to exceed its 52-week high, driven by increased volume during the pre-breakout rally. This breakout sets Shemaroo Entertainment up for a positive trend shift, and the accumulated volume suggests further growth in the near future. The bounce from the near 50-day EMA emphasises the stock’s effort to establish new highs.

On the weekly RSI chart, the relative strength index is entering the 65-80 range with similar pattern formation, and a robust ADX at 23 indicates good directional strength, favouring a continued uptrend. In the event of a retracement, it is essential to monitor key support levels, particularly at a 50-day EMA. The minor upper resistance is observed at Rs 205 which is a 52-week high level of the stock, and the overall favourable structure is maintained as the stock consistently trades above crucial moving averages, affirming a sustained long-term upward trend.

Shemaroo Entertainment Ltd is in the provision of entertainment services.

HBL Power Systems 

Daily chart of HBL Power Systems 

HBL Power Systems’ current stock performance is characterised by a green daily candle facing selling pressure, poised for a potential breakout from a consolidation phase, accompanied by a significant increase in trading volume. Starting at Rs 461 on Thursday, the stock reached an intraday high of Rs 48. This breakout is notable as it follows a few weeks of consolidation, suggesting a likely continuation of the bullish trend.

Confirmation of the breakout is expected with a strong upthrust in the daily candle, indicating a sustained bullish momentum. After reaching its 52-week high, the stock may witness a rapid ascent following today’s sustained levels. The current market action is supported by a surge in price volume, surpassing the typical trading day volume.

The relative strength index (RSI) recently entered the 65-80 range, suggesting the potential for a significant upward movement in the stock price, particularly as it continues to trade within this range. The ADX, currently at a low of 21, indicates very low directional strength. The 20-day Exponential Moving Average (EMA) serves as a crucial support level during corrective movements, and the overall market structure favours traders, with the stock consistently trading above major moving averages.

HBL Power Systems Ltd engages in the manufacture of batteries, electronic mobility, and other related 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.