Potential breakout stocks to watch: Blue Star and Strides Pharma Science

Blue Star and Strides Pharma Science are identified as upside potential stocks based on technical analysis. Both stocks have displayed promising technical setups, including price volume action before and a potential to breakout. Currently trading at Rs 1,323.40 and Rs 816 respectively, their price structures align with positive signals from technical indicators like RSI and ADX, breakout scenario in the coming time.

Blue Star Ltd 

Daily chart of Blue Star Ltd

Blue Star is currently displaying range trading on the daily chart at an all-time high. The stock price is trading with the bullish engulfing candle. If it manages to cross and close above an all-time high level with the support of good volume compared to down days volume, the stock price may start the strong momentum-up move in the coming trading sessions again. Currently, volume is rising and probably the traders are looking for a confirmed direction for trade.

Currently, the stock price is trading above all important EMAs probably turning short-term bullish again, the previous uptrend of the stock price has logged 28.71% of gains to the traders in a month, witnessing a breakout from the base to the high of Rs 1,335. Looking at the Relative Strength Index trading at 64.38, it suggests the bullish strength of the stock to gain maximum in the coming time as it has shifted its trading range. ADX is at 55, which is on the higher side, reflecting the current scenario of price momentum that is likely to pick up soon with the breakout of the 52-week high level.

In the event of a retracement, it is essential to monitor key support levels, particularly at Rs 1,038. The minor upper resistance is 52-week high, and if the stock starts back-to-back closes above 52-week high, then the stock may consistently trade above current levels.

Those who are looking for a potential trade in the Blue Star can buy the stock at the current level with a stop loss of Rs 1,235. Look for the target above the all-time high of the stock.

Blue Star Ltd. engages in the manufacture, trade and installation of air conditioning systems.

Strides Pharma Science Ltd 

Daily chart Strides Pharma Science Ltd

Strides Pharma Science’s current stock performance is characterized by a promising technical setup, trading at Rs 816, and has the potential to breakout at level Rs 823 to start a new uptrend with the help of positive volume. Currently, the stock price is in a lower ATR, trading just above the 20-day EMA. Previously, we saw large volumes traded on up days. Currently, the volumes are on the lower side and picking up.

The stock is trading above both 20-day and 50-day high, likely to take support in future at the same levels as it has shown in historical price data. The earlier stock price has given a breakout of a 52-week high gaining 60.12% of gains. The Relative Strength Index currently trading at 62.81, at the lower level of its historical range. This suggests the potential for a significant upward movement in the stock price. The ADX, currently at 36, indicates increasing directional strength and momentum.

The level at Rs 735 and 50-day EMA serves as a crucial indicator for corrective movements and the overall market structure favours traders if the stock crosses and trades above the Rs 823 level.

Those who are looking for a potential trade in Strides Pharma can buy the stock at the current level with a stop loss of Rs 757. Look for the target above the all-time high of the stock.

Strides Pharma Science Ltd. engages in the development, manufacture and distribution of Internet Protocol-led generics and biopharmaceutical products.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.