On the daily charts, Dabur formed a Pole and Flag pattern which is also a bullish continuation pattern. Most of the technical indicators suggest that the momentum is likely to continue on the higher side.
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Dabur India, part of the personal care space, recently witnessed a breakout from a falling trendline on the weekly charts in the last week of November which pushed the stock to a fresh 52-week high in December 2022.
The stock hit a fresh 52-week high of Rs 610 on 7 December 2022. It rose more than 6% in a month and nearly 18% in the last 6 months.
The stock from the FMCG sector could well inch towards its record high level above Rs 650 in the next 3-4 weeks, suggest experts. Short-term investors can look to buy the stock now or on dips towards Rs 580.
On the daily charts, Dabur formed a Pole and Flag pattern which is also a bullish continuation pattern. Most of the technical indicators suggest that the momentum is likely to continue on the higher side.
The Relative Strength Index (RSI) is at 62.9. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is above its center and signal Line, this is a bullish indicator.
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On the price front, the stock is trading below 5 and 10-DMA while it is still trading above 20,30,50,100 and 200-DMA which is a positive sign for the bulls.
“The stock has given a falling supply trend line breakout on the weekly scale and forming higher highs – higher lows from the past 3 weeks. It has formed a strong bullish candle on the weekly scale and the base is gradually shifting higher with noticeable volumes,” Arpit Beriwal, Analyst, Equity Derivatives & Technicals, MOFSL, said.
“It has also formed a pole and flag pattern on the daily scale which is a bullish continuation pattern and we expect the stock to move higher,” he added.
The Relative Strength Index (RSI) is near 68 zones on a weekly scale which suggests momentum is likely to continue going ahead.
“Overall, we are seeing good buying interest across the FMCG sector and stock is likely to outperform in coming sessions. Looking at the overall chart structure on the daily and weekly scale we expect the stock to move upwards towards Rs 655,” recommends Beriwal.
“Traders can look at buying at current levels keeping a stop loss below Rs 580 zones on a closing basis,” he added.
(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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