Breakout stocks of the day: Cipla and Glenmark Pharmaceuticals

Mahindra Cipla and Glenmark Pharmaceuticals are strong positive breakout prospects with price volume support. The stock price, which is currently trading at Rs 1,301 and Rs 898, has shown ascending triangle and rectangle chart pattern breakouts, respectively. The breakout is in sync with the RSI, ADX, and other technical analysis metrics.

Cipla Ltd

Daily chart of Cipla Ltd 

Cipla’s stock is currently trading with a strong bullish candle and a robust ascending triangle breakout. Buyers were hunting this stock as the setup was clean, today’s daily volume was more than enough for this large-cap to sustain this breakout.

The stock opened at Rs 1,291 on Wednesday, traded at an intraday low of Rs 1,294, then surged to a day high of Rs 1,307. It has been in pattern formation for the last 5 months and has broken over upper resistance, indicating a trend continuation.

The price of Cipla is trading at its all-time high with impetus after a breakout with volume increase. With its breakout, it is poised to continue the positive trend. The bunch of stock volume accumulated from December is more than enough to sustain the price momentum, and it is expected to grow further soon because the setup appears to be great. It has bounced from its 50-day moving average, indicating that it is striving to set new highs. Today, the stock price has an ascending triangle, allowing the stock price to trade higher.

The relative strength index has now entered the 65-80 range again, indicating that the stock price may rise further. The ADX is tuning upward from the level of 14, which indicates the directional strength will be higher as the stock starts the uptrend.

In the case of a lower-side retracement, the major support level to watch for during any corrective swings is 50-day EMA. The stock price has a clear sky to meet the fundamental targets. 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.

Cipla Ltd engages in the manufacture and distribution of healthcare products and bulk drugs.

Glenmark Pharmaceuticals Ltd

Dailly chart of Glenmark Pharmaceuticals Ltd  

Glenmark Pharmaceuticals’ stock is trading with a green daily candle and has given a breakout of the rectangle chart pattern with a volume spike yesterday.

On Wednesday, the stock began at Rs 896, then made an intraday high of Rs 903. The stock has been in a consolidation for the last 5 months.

Glenmark Pharmaceuticals is about to sustain the breakout after the closure of the day candle, which would continue the bullish trend. The stock is trading near its 6-year high and may show a quick jump after today’s sustenance. The stock price saw a price volume breakout yesterday, which was accompanied by a volume rise bigger than the ordinary trading day.

The relative strength index has also into the 65-80 range, indicating that the stock price may begin to rise sharply in the near future as it crosses the level of 70. The ADX indicator line is rising from the bottom and is now trading at 19, indicating that directional strength is on the lower side.

The 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.

Glenmark Pharmaceuticals Ltd. is a holding company, which engages in the development, manufacture, and marketing of pharmaceutical 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.