About the company:
Hathway Cable & Datacom Ltd (NS:HAWY) is engaged in distributing internet services through cable and has a strategic stake in entities involved in the cable television business. The stock’s 52-week high is Rs 57.4, and the 52-week low is Rs 20.5. It is trading 52% below the 52-week high and 34% above the 52-week low level.
Technical observations:
One week time frame: (Fig 1)
The stock has made an all-time high of Rs. 57.4 in July 2020. Later on, it pulled back to Rs 20, where it has made a strong base formation. The stock is now breaking out of a bullish cup and handle pattern this week. The share has shown strength as the Relative Strength Index (or RSI) has moved above 50, accompanied by good volumes. If the stock breaks above Rs 29, then it will face the next resistance at Rs 33.
One day time frame: (Fig 2)
After making a high of Rs 29.25 on June 11, 2021, the stock was pulled back and consolidated at Rs 25.5. It has now broken out of a falling channel with heavy volume depicting a bullish pennant pattern. Above-average volumes accompany the bullish movements. It may result in further momentum in the stock.
One-hour time frame (Fig 3)
We witnessed a break out on July 7 from the level of Rs 27. The stock made a high of Rs 28.7 and then pulled back and is now trying to consolidate after pulling back. We saw such breakouts and pullbacks every day since July 5. We suggest this is a good entry point for a short-term trader. It is noteworthy that average volumes accompany the positive movement in the stock on the one-hour time frame chart.
Conclusion:
We anticipate the share to keep positive bias and move higher in the short, medium, and long term. Traders should trade on a pullback by keeping Rs 25 as stop loss on a daily closing basis.