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    Chart Check: 50% from May 2022 low! This tea and coffee maker is on track to hit fresh record highs

    Synopsis

    CCL Products (India) was founded to produce the finest and most exquisite coffee in the world. The company is the largest instant coffee exporter and private label manufacturer across the globe.

    Chart Check: 50% from May 2022 low! This tea and coffee maker is on track to hit fresh record highsiStock
    CCL Products India, part of the FMCG industry, has rallied over 50 per cent from May 2022 lows, and traders who missed the previous rally can buy the stock now as technical charts suggest fresh record highs could be in the offing.

    The stock rallied from Rs 315 on 11 May 2022 (52-week low) to Rs 477 on 26 August, which translates into an upside of over 51 per cent in just three months.

    The scrip also gave a breakout from an inverse head and shoulder pattern around Rs 460. An inverse head & shoulder pattern is the mirror image of the head and shoulder pattern and is a bullish signal.

    CCL Products (India) was founded to produce the finest and most exquisite coffee in the world. The company is the largest instant coffee exporter and private label manufacturer across the globe.

    Short-term traders can buy the stock now or on dips for a possible target of Rs 600, which will surpass its current high placed at Rs 514.90, recorded on 2 February 2022, suggest experts.

    After hitting a record high in February 2022, the stock failed to hold on to the momentum and slipped to Rs 300. After hitting the 52-week low of Rs 315 in May, the counter jumped sharply.

    It rose more than 13 per cent in a week and advanced nearly 40 per cent in the last three months. The price action suggests that bulls are in control.

    On the price front, the stock is trading well above the short- and long-term moving averages placed at 5, 10, 30, 50, 100 and 200-DMA, a positive sign for the bulls.

    CCL CHART CHECKAgencies


    On the weekly charts of CCL Product, we can spot that the overall price trend is on the upside while forming higher high, and higher low formations.

    “Prices in the latest week gave a breakout from an inverse head and shoulder pattern, indicating the start of an upside trend. The breakout is confirmed by high volumes,” said Vidnyan Sawant, AVP - Technical Research, GEPL Capital.

    “Bollinger band on the daily timeframe is expanding which tells that the volatility in the prices is rising for an upside move,” he sa
    “RSI plotted on a weekly timeframe have shown a range shift, indicating that the momentum in the prices is rising,” added Sawant.

    “Going ahead, we expect the prices to go higher till the level of Rs 600, where one can place a stop loss at the level of Rs 412, on the closing basis,” recommends Sawant.

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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