Chalet Hotels Breaks Out: A Promising Upside for Investors

Chalet Hotels Ltd, a holding company actively involved in hotel ownership, development, and asset management across various metro cities in India, has recently exhibited notable performance. Established on January 6, 1986, and headquartered in Mumbai, the company operates in hospitality, real estate, and retail segments.

Technical analysis

A detailed analysis of Chalet Hotels Ltd.’s stock performance from October 6, 2023, to November 21, 2023, unveils an intriguing technical pattern known as the Bullish Up Flag. This pattern suggests the potential for a significant price movement in the near term, with consolidation reinforced by the 60-day moving average (DMA) and retracement of 38.2% of the previous rally started on June 23, 2023, at Rs 401.55.

In today’s trading session, Chalet Hotels took the spotlight, surging impressively by over 4.25% with trading volumes surpassing 2.19 million shares, indicating a breakout from the aforementioned technical price pattern. The breakout is further supported by a crossover of short-term moving averages (5-13 and 5-26 DMA), adding confidence to this upward momentum.

Future outlook

Recent data indicates that Chalet Hotels has breached the latest swing high of Rs 612 and achieved an intraday high of Rs 620.80, which also represents the high of the entire consolidation period. Closing above Rs 608 around the day high at Rs 614.60 solidifies this breakout, presenting a compelling opportunity for discerning swing investors. The projected target for this pattern hovers around Rs 730, implying a substantial surge of more than 20% from the breakout point.

Adding to this optimistic outlook is the 14-week Relative Strength Index (RSI), comfortably positioned within the bullish zone, hovering around 63.27. This underscores the company’s favourable standing. Bolstered by robust momentum indicators represented by the mentioned short-term key moving averages, both momentum traders and swing investors find compelling reasons to consider Chalet Hotels from India’s hospitality sector for strategic inclusion in their forthcoming trading strategies.

Disclaimer:This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.