EIH defies market turbulence with a 15.75% rally and breaks out of a 15-year price pattern

In the midst of recent market volatility, characterised by profit booking and downward movements, one hotel company is standing head and shoulders above its competitors and the broader market. EIH Ltd., a major player in the hotel industry, has attracted significant attention by not only surviving the market turmoil but also delivering a remarkable rally of 15.75% in just one week. This surge has been supported by substantial trading volumes, totalling 16.26 million shares, and has resulted in the breakout of a significant long-term continuation price pattern on the weekly chart. 

EIH Ltd. is a company primarily engaged in providing premium luxury hotel services under the Oberoi, Maidens, and Trident brands. In addition to its core business, the company is involved in flight catering, airport restaurants, project management, and corporate air charters. Founded by Rai Bahadur Mohan Singh Oberoi in 1934, the company is headquartered in New Delhi, India. 

The company’s stock price has seen its share of highs and lows over the years. Notably, it reached its peak at Rs 215.25 in the first week of January 2008 but subsequently retraced, finding support around the Rs 42.65 level, marking a retracement of over 78.6% from its impressive rally that began in August 2000. 

Recent trading sessions have witnessed a surge in buying interest, driving the stock upward following a bullish crossover of the 5-26 and 13-26 Daily Moving Averages (DMA). Furthermore, a breakout trendline has emerged, connecting the highs from the first week of January 2008 (Rs 215.25) and mid-January 2018 (Rs 227.15), indicating the presence of a sustained continuation price pattern spanning more than 15 years. 

During the last week, the stock experienced a robust 15.75% rally, ultimately closing above the breakout trendline. This move was bolstered by substantial trading volumes, totalling 16.26 million shares, solidifying the breakout and sparking optimism among investors. With the potential to reach Rs 320, representing a 35% gain from the breakout level of Rs 237, EIH Ltd. is now capturing the attention of swing traders and long-term investors, offering a promising opportunity for further upside potential in the market.

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.