Breakout stocks of the day: Hindustan Petroleum and Sona BLW

With price volume support, Hindustan Petroleum and Sona BLW are strong positive breakout candidates. The stock price, which is currently trading at Rs 421 and Rs 624, has given a breakout of range and cup & handle chart pattern respectively. The RSI, ADX, and other technical analysis parameters are in harmony with the breakout.

Hindustan Petroleum Corp. Ltd

Daily chart of Hindustan Petroleum Corp. Ltd 

Shares of Hindustan Petroleum are currently trading with a strong bullish candle and a robust range breakout. Because buyers were ready to invest in this company, today’s daily volume was higher than the prior trading session.

The stock opened at Rs 385 on Thursday, traded at an intraday low of Rs 382, then surged to a day high of Rs 436. The stock has been in consolidation or a range for the last 16 trading sessions and has broken over upper resistance, indicating a trend continuation.

The scrip of Hindustan Petroleum has smashed the 52-week high with impetus after a breakout with volume increase. With its breakout, it is poised to continue the positive trend. It has reached a 6-year high, and it is expected to grow further soon because the setup appears to be great. The stock price has surged above its 20-day moving average, indicating that it is striving to set new highs. Today, the stock price had a price volume breakout, allowing this breakout to trade higher.

The relative strength index has now entered the 65-80 range, indicating that the stock price may rise further.

In the case of an upper-side retracement, the major support level to watch for during any corrective swings is Rs 385. The stock price might reach a high of Rs 490 as a target. The overall structure remains favourable for traders, as the stock continues to move above all of its important moving averages, indicating a long-term upward trend.

In a single year, the stock has returned 82.27%.

Hindustan Petroleum Corp. Ltd is engaged in the business of refining crude oil and sales of petroleum products.

Sona BLW Precision Forgings Ltd

Weekly chart of Sona BLW Precision Forgings Ltd

Sona BLW Precision Forgings’ stock is trading with a green candle and is on the verge of breaking out of the cup & handle chart pattern on higher-than-average volume.

On Thursday, the stock began at Rs 618, fell to an intraday low of Rs 608, and then climbed to a day high of Rs 435. The stock has been building a handle of the chart pattern for the last 18 weeks.

Sona BLW Precision Forgings is nearing a breakout of the cup and handle chart pattern, which would reverse the negative trend. The stock is trading near its recent high and may consolidate for some time after breaking out. The stock price saw a price volume breakout on Thursday, which was accompanied by a volume rise bigger than the daily average.

The relative strength index has also moved into the 65-80 range, indicating that the stock price may begin to rise sharply soon. The ADX indicator line is rising and is now trading at 24, indicating that directional strength is developing. The stock price is also following moving average levels, having just bounced from the 50-day EMA.

The Rs 50-day EMA is the fundamental support level to watch for during any corrective movements. The overall structure remains favourable for traders, with the stock trading above all of its major moving averages.

The stock returned 50.10% of its gains in six months.

Sona BLW Precision Forgings Ltd. operates as an automotive systems and components manufacturer.

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.