Breakout stocks of the day: Zen Technologies and UFlex 

With price volume support, Zen Technologies and UFlex are strong positive breakout candidates. The stock price, which is currently trading at Rs 809 and Rs 483, has formed a rectangle and inverted head and shoulder chart pattern. The RSI, ADX, and other technical analysis parameters are in harmony with the breakout.

Zen Technologies Ltd

Daily chart of Zen Technologies Ltd 

Today, shares of Zen Technologies are trading with a powerful bullish candle and a rectangle chart pattern breakout. The daily volume was larger than the previous trading session since buyers were eager to invest in this company.

On Wednesday, the stock opened at Rs 779, traded at an intraday low of Rs 775, and climbed to a day high of Rs 810. The stock was in a decline before the creation of this pattern, which indicates a trend reversal.

Zen Technologies has produced a rectangle chart pattern, and the price has broken through it. It is ready to begin a new bullish trend with its breakout. The scrip is at a three-month high, and it may continue to rise because the setup appears to be ideal. The stock price jumped off its 50-day EMA, indicating that it is attempting to enter a bullish trade. Today, it witnessed a price volume breakout, which is enabling this breakout to trade higher.

The relative strength index has now entered the 65-80 level, indicating that the stock price may continue to rise from here.

In the event of a retracement on the upper side, the primary support level to watch for during any corrective swings is Rs 795. The stock price could be targeted between Rs 855 and Rs 911. The overall structure remains positive for traders, as the stock remains above all of its significant moving averages, signalling a protracted rising trend.

In one year, the stock has provided multibagger returns of 327.59%.

Zen Technologies Ltd is engaged in the provision of training systems and counter-drone solutions.

UFlex Ltd

Daily chart of UFlex Ltd

With higher-than-average volume, UFlex’s stock is trading with a green candle and on the approach of breaking out of an inverted head and shoulders chart pattern.

On Wednesday, the stock opened at Rs 472, traded at an intraday low of Rs 466, then soared to a day high of Rs 491. For the last three months, the stock has been forming a chart pattern.

UFlex is on the way to forming an inverted head and shoulders chart pattern, which would extend the bullish trend. The stock price is trading near its previous high and may consolidate for a while as the day candle is under selling pressure and a weak resistance remains in place. On Wednesday, the stock price saw a price volume breakout, which was accompanied by a volume surge greater than the daily average.

The relative strength index has also entered the 65-80 level, indicating that the stock price may continue its strong increase in the near future. The ADX indicator line is rising and is now trading at 26, indicating that directional strength is emerging at an early stage. The stock price is likewise respecting moving average levels, having just bounced from the 50-day EMA.

The primary support level to watch for during any corrective swings is the Rs 50-day EMA. The overall structure remains positive for traders, with the stock trading above all of its significant moving averages.

In six months, the stock returned 16.99% of gains.

UFlex Ltd is a holding company, which engages in the provision of flexible packaging 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.