Time for Coal to turn into diamond: This Maharatna stock is on verge of breakout of cup pattern!
If the breakout materialises, the stock could do wonders, and it has been a long-time underperformer.
Coal India is the single largest coal producer in the world and one of the largest corporate employers with manpower of 2,72,445 (as of April 1, 2020). CIL functions through its subsidiaries in 84 mining areas, spread over eight states of India. Coal India Limited has 352 mines (as of April 1, 2020) of which, 158 are underground, 174 opencast, and 20 mixed mines.
The stock of Coal India is the top gainer in Nifty 50 index as it has jumped over 2.5 per cent in the early deals. The first-hour volumes are astonishing.
The stock is on the verge of a multi-week breakout. The pattern formed on the weekly chart is a cup pattern, which has a length of 15-week and a depth of 19.55 per cent.
The stock is up by nearly 26 per cent from August lows. Meanwhile, on a YTD basis, the stock is up by nearly 24 per cent. If the breakout materialises, the stock could do wonders, and it has been a long-time underperformer. The stock has only recently started to outperform in the benchmark indices.
Considering the momentum and technical pattern development, this Maharatna company should be on your radar.