Jamna Auto Industries: Driving growth with a breakout

Jamna Auto Industries Ltd engages in the manufacture and sale of automobile suspension products. The firm offers parabolic and tapered leaf springs, lift axle and air suspension. It operates through the following geographical segments: Within India and Outside India. The company was founded by Bhupinder Singh Jauhar on September 30, 1965, and is headquartered in New Delhi, India.

Technical analysis

A detailed analysis of its stock performance since July 04, 2022, reveals a fascinating long-term technical continuation pattern known as the Bullish Up Flag.

This pattern, identified by a consolidation phase reinforced by the 200-day moving average (DMA) and a retracement of nearly 38.2% from the previous rally that commenced on March 24, 2020, at Rs 21, hints at the potential for a significant price movement in the near term. In today’s trading session, Jamna Auto stole the spotlight, surging impressively by more than 10% with robust trading volumes exceeding 35 million shares, confirming a breakout from the Bullish Up Flag pattern.

Stock performance

Recent data showcases that Jamna Auto Industries Ltd has not only breached the latest swing high of Rs 127.10 but also achieved an intraday high of Rs 135.35, just below the high of the entire consolidation period which is also a lifetime high. Closing above the trendline breakout level of Rs 124 solidifies this breakout, presenting an enticing opportunity for discerning swing investors. The projected target for this pattern is around Rs 161, indicating a substantial surge of more than 30% from the breakout point.

Future outlook

Enhancing this optimistic outlook is the close above the Supertrend (ATR 10, Factor 1), confirming the strong momentum. This underscores the company’s favourable standing. With robust momentum indicators represented by the mentioned short-term key moving indicators, both momentum traders and swing investors have compelling reasons to consider Jamna Auto Industries Ltd. for strategic inclusion in their investment portfolios. As the company rides the bullish momentum, investors keen on potential returns in the dynamic financial landscape find a promising opportunity in Jamna Auto Industries Ltd.

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.