Penny stock swing trading: Pattern target indicates a strong 40 per cent up-move - Keep it on your watchlist!

This robust movement in the stock resulted in a decisive breakout of a cup-like pattern that persisted for almost 107 weeks.

Indian benchmark indices regained their lost momentum on Wednesday, with Nifty surging past the 21,300 mark and Sensex edging closer to the 70,600 mark. The broader markets displayed strength, with the Nifty Small-Cap trading higher by nearly 1 per cent and the Mid-Cap index up by 0.90 per cent.

One stock demanding attention from traders and investors is Manaksia Aluminium Company Ltd. The stock experienced a remarkable surge of over 15 per cent in the initial trading hour, accompanied by a substantial trading volume of over 7 lakh shares on the NSE, surpassing the previous session. Notably, the stock marked a fresh 52-week high of Rs 36.45 on the NSE.

This robust movement in the stock resulted in a decisive breakout of a cup-like pattern that persisted for almost 107 weeks. While not a perfect textbook cup pattern, the structure closely resembles one. Significantly, the breakout is supported by robust volume, indicating broader market participation in the direction of the trend.

Technical indicators further underscore the positive momentum. The daily 14-period RSI has generated a buy signal by moving above its nine-period average, confirming a positive bias. Additionally, it has seen a range shift to a super bullish territory. The daily MACD is trending upward while sustaining above its nine-period average, reinforcing the positive bias in the stock. The Relative Strength Rating is improving and has marked a fresh swing high.

Manaksia Aluminium Company Ltd (MACL), managed by Mr. Sunil Kumar Agarwal and Mr. Anirudh Agarwal, is a Kolkata-based company incorporated in 2010. Initially dormant until 2013, the company's aluminium vertical was later transferred under a demerger scheme from Manaksia Limited (ML). Since then, MACL has been actively involved in manufacturing value-added aluminium products, including aluminium rolled sheets/coils, patterned sheets, roofing sheets, flooring sheets, and aluminium alloy ingots. The manufacturing facility is situated in Haldia, West Bengal, with an installed capacity of 25,800 tonnes per annum.

The cup's depth is approximately 46 per cent, and with the breakout point at Rs 33.65, the stock is poised to achieve the depth of the cup according to target calculations. Therefore, it is advisable to keep a close eye on this penny stock for potential swing trading opportunities.

Disclaimer: The article is for informational purposes only and not investment advice