Breakout: Inverse Head & Shoulders Cheering Investors with 8% Rally!
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Despite a red sea of numbers in today’s session, with the benchmark falling 111 points to 21,631, by 2:03 PM IST some stocks are not giving up. In fact, investors’ inclination towards some counters has led to a crystal clear breakout on the second day of this year.
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One such counter is TCNS Clothing (NS:) Co Limited which is in the apparel business and has a market capitalization of INR 2,383 crore. The company is a loss-making entity on a TTM basis and therefore the stock has also taken a severe hit in the past.
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Image Description: Weekly chart of TCNS Clothing Co
Image Source: Investing.com
The stock has consistently fallen in the last one year, taking a hit of around 29%, despite a stupendous rally in the small-cap space in the previous year. However, the stock is now taking a reversal with the formation of a renowned Inverse Head & Shoulders chart pattern on the weekly time.
This is a trend reversal pattern which is known to reverse a prior downtrend into an uptrend. The pattern has formed near the all-time low which further enhances the probability of a strong reversal.
Today the stock jumped 8% to INR 407 and if it closes above 400 by Friday, the breakout will be confirmed. On the upside, The level of INR 450 might become a piece of cake for the stock once the hurdle of 400 is decisively breached.
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X (formerly, Twitter) – aayushxkhanna
CYBER MONDAY SALE: You can avail InvestingPro+ at a massive 60% discount and by using the coupon code PROC324 get an extra 10% discount over and above the ongoing promotional price for the Bi-yearly plan and 1PROC324 for the annual plan. Click on the image below to access the link
Despite a red sea of numbers in today’s session, with the benchmark falling 111 points to 21,631, by 2:03 PM IST some stocks are not giving up. In fact, investors’ inclination towards some counters has led to a crystal clear breakout on the second day of this year.
One such counter is TCNS Clothing (NS:) Co Limited which is in the apparel business and has a market capitalization of INR 2,383 crore. The company is a loss-making entity on a TTM basis and therefore the stock has also taken a severe hit in the past.
Image Description: Weekly chart of TCNS Clothing Co
Image Source: Investing.com
The stock has consistently fallen in the last one year, taking a hit of around 29%, despite a stupendous rally in the small-cap space in the previous year. However, the stock is now taking a reversal with the formation of a renowned Inverse Head & Shoulders chart pattern on the weekly time.
This is a trend reversal pattern which is known to reverse a prior downtrend into an uptrend. The pattern has formed near the all-time low which further enhances the probability of a strong reversal.
Today the stock jumped 8% to INR 407 and if it closes above 400 by Friday, the breakout will be confirmed. On the upside, The level of INR 450 might become a piece of cake for the stock once the hurdle of 400 is decisively breached.
—————————————————————–
X (formerly, Twitter) – aayushxkhanna
CYBER MONDAY SALE: You can avail InvestingPro+ at a massive 60% discount and by using the coupon code PROC324 get an extra 10% discount over and above the ongoing promotional price for the Bi-yearly plan and 1PROC324 for the annual plan. Click on the image below to access the link
