BPL breaks 52-week high, witnesses symmetric triangle breakout
Shares of BPL Ltd, the small-cap consumer electronics company, surged more than 13.5 per cent in intraday trade on December 11 breaking previous week’s consolidation depicting positive momentum. Considering, the daily time frame the stock had given a kind of symmetric triangle breakout at 74.50 on November 28 with huge volume breakout. However, the stock witnessed a pullback for more than a week up to the trendline level. The stock bounced back on December 11 with such a pace that it broke previous two resistances, with still higher volumes and oscillators in the overbought zone.
Considering weekly time frame, the stock has started with its 5th consecutive uptick breaking its 52-week high and is nearing its high of 100.40 levels. Going forward, the stock may continue moving up or may witness some correction of up to 88-85 levels for yet another bounce. The stock holds a potential of nearly 20 to 30 points from current levels in the first place.
BPL’s doubling revenue from Rs. 21.56 crore to Rs. 43.21 crore in September 2017 quarter while PAT expansion from Rs. 0.95 crore to Rs. 15.99 crore supports the potential upside in the stocks.