Don’t miss the action in this pharmaceutical stock: The Cup and handle pattern breakout is seen with huge volumes!
Notably, the RSI has entered a super bullish territory, indicating a significant shift in momentum.
The Nifty Pharmaceutical index has surged by an impressive 30 per cent on a year-to-date basis in 2023, significantly outperforming the Nifty 50 index. Against the backdrop of India experiencing a single-day spike of 628 new COVID-19 cases and a rising active caseload, pharmaceutical stocks are catching the attention of investors and traders.
One noteworthy contender in this sector is Zydus Lifesciences Ltd, part of the Zydus Group, which is a global lifesciences company committed to enhancing people's well-being. Zydus Lifesciences has recently exhibited a compelling technical pattern known as the 'Cup and Handle' on its weekly chart.
In 2021, the stock reached a high of Rs 673.70, and in August 2023, it approached a similar high before undergoing a retracement. Following this retracement, the stock surpassed previous resistance levels, leading to the breakout of the cup and handle pattern. This breakout is substantiated by robust trading volume, nearly three times the 30-week average volume of 57.7 lakh shares, indicating substantial market participation in the emerging trend.
Furthermore, technical indicators support a bullish outlook for Zydus Lifesciences. The weekly Moving Average Convergence Divergence (MACD) has produced a bullish crossover, reinforcing the positive sentiment. Additionally, the weekly Relative Strength Index (RSI) has recently experienced a bullish crossover and is on an upward trajectory, further confirming the positive sentiment. Notably, the RSI has entered a super bullish territory, indicating a significant shift in momentum.
Given these technical signals, both traders and investors are advised to include Zydus Lifesciences Ltd in their watchlist, as it presents an intriguing opportunity in the current market environment.
Disclaimer: The article is for informational purposes only and not investment advice
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