🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Stock Breaks Out of Inverse H&S Pattern, Rallies 7%

Published 20-06-2024, 10:31 am

While the mood of the broader market is not good enough, stock-specific buying is still there. The Nifty Small cap 100 index is up 0.44% to 18,236, by 10:16 AM IST and one counter from this space that is gaining quite good traction is Heubach Colorants India Limited, formerly Clariant Chemicals (India) Limited (NS:HEUB).

This is an India-based company, which is principally engaged in the business of manufacturing and selling specialty chemicals and has a market capitalization of INR 903 crore. The company’s segments include Plastics and Coating and Specialty Chemicals.

SUMMER SALE: Unlock the power of InvestingPro for unparalleled stock analysis. Discover high-quality dividend stocks, gain insights into top investors' portfolios, and access our advanced intrinsic value calculations. Click here and subscribe now at 74% off, just INR 182/month!

The stock had taken a decent hit since the beginning of the year, falling from a January 2024 high of INR 654.9 to the recent low of INR 354, losing a whopping 45% value in less than 6 months.

Image Source: Investing.com

From the last few sessions, the stock had been consolidating in a range and the price action formed an Inverse Head & Shoulders chart pattern on the daily time frame. This is a bullish reversal pattern and is known to reverse the prior downtrend into an uptrend.

Today, the share price of Heubach Colorants India completed this pattern and jumped the neckline at INR 405, delivering a successful breakout. The volume for the day so far has been recorded at over 205K shares, which is 367% higher than the 10-day average of 46K shares, and its only been an hour into today’s session.

The breakout supported by volume expansion is now painting a rosy picture for the counter and bulls have already started to charge from hereon. Looking at the dimensions of the pattern, the stock seems geared up to travel to INR 455, depicting an 8% upside potential, from the CMP of INR 421.

On the other hand, if the stock takes a U-turn, then a stop loss below INR 387 would be sufficient to cut the losses.

InvestingPro is now available at a mouth-watering discount of up to 74%, for just INR 182/month. Click here to make the most of this SUMMER SALE!

Also Read: The Power of High-Quality Dividend Stocks with a "Screener"

X (formerly, Twitter) - Aayush Khanna

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.