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The stock witnessed a strong breakout of inverted Head & Shoulders pattern
The stock of Bata India Ltd advanced more than 4 per cent during Wednesday’s trading session and also, made the day's high of Rs 1,910 level. The stock had made an all-time high in the month of November 2021 and thereafter, entered into a slight downtrend move. Moreover, it has jumped more than 15 per cent from its recent low.
On Wednesday, the stock witnessed a strong breakout of inverted Head & Shoulders pattern on the daily chart with a sizeable bullish candle. The stock is trading above its long-term moving average i.e. 200 DMA and also, gives a sharp breakout to its 50-DMA on Wednesday. This setup is indicating a clear short-term uptrend in the stock.
All the major indicators are confirming bullish directions in all the time frames. The 14-period RSI is rising and has crossed above its prior high. It has crossed above 50 and shows bullish momentum. The MACD line is trading above its signal line and zero line, which indicates a positive trend in the stock. Moreover, the MACD histogram is rising steadily and is above its prior high.
The short-term trend of the stock is extremely bullish. It is likely to continue its bullish momentum for some more days. Besides, it is expected to test the levels of Rs 2,000 to Rs 2,050.
The above technical evidence suggests that the stock is likely to continue its upside momentum.