Smallcap stock breakout alert: Vidhi Specialty Food Ingredients witness wide range candle breakout!
The stock of Vidhi Specialty Food Ingredients has been buzzing on the bourses. The stock has registered double-digit gains and volume also witnessed on Wednesday is the highest since the first week of August.
The stock had opened at a level of Rs 339 and made a low of Rs 337.50 and thereafter, it went from strength to strength to scale new intraday highs.
The stock has registered a very good and reliable pattern breakout, which is popularly known as wide-range candle breakout. This is one of the most overlooked technical signals.
For those who are not aware of this pattern, firstly, the stock has to be in a clear uptrend. In the current case, we are seeing that the stock is trading above its 20-DMA and once it forms a wide-range candle, it will be a green signal for momentum traders. However, the catch is to define the wide-range bar. We generally use this criterion when a candle has the whole real body twice the height of an average candle.
The stock is meeting the above criterion. Moreover, it has been backed by a huge spurt in the volume. Hence, watch out!