This stock of below Rs 100 witnesses a breakout. Is this the start of a mega bull-run in the stock?

The stock of Texmo Pipes & Products Limited performed pretty well in the month of November as it gained nearly 16.5 per cent. Besides, its start has also been quite wonderful in the month of December. We are just three trading sessions into the month of December and the stock has already logged gains of 25.63 per cent.   

The share price of Texmo Pipes & Products has shown outperformance in the month of November as well as in the initial part of December 2021. Recently, the stock witnessed a breakout of a 26-week long consolidation pattern and interestingly, the breakout has been witnessed on the back of the above-average volume. The above-average volume highlights large participation in the direction of the trend.    

As the stock is trading at 10-year highs, it is above all the short and long-term moving averages. The stock is meeting Mark Minervini’s trend template. It is trading above 40, 30, and 10-weekly averages and all of them are trending up. At the same time, there is the desired sequence. Along with this, the stock, which is above the 50-weekly average and 20-period RSI, is much above 65-level and is in a super bullish zone. It is also meeting Daryl Guppy’s multiple moving averages (GMMA). This structure indicates that the stock is in a clear uptrend.  

The stock is clearly on an uptrend and the trend strength is extremely high. The average directional index (ADX), which shows trend strength, is as high as 47.63 on a weekly chart. Generally, a level above 25 is considered a strong trend. In both the timeframes, the stock is meeting the criteria.