In the last trading session of the week, Nifty opened gap up and traded higher to touch the last swing high. In such strong bullish trading session, some stocks from the Metal sector witnessed strong buying activity and one stock from same sector showed decent strength and registered a breakout of the continuation pattern on the weekly charts.
National Aluminium Co. Ltd. engages in the manufacture and sale of metallurgical grade alumina. It operates through the following segments: Chemical and Aluminium. The Chemical segment includes Calcined Alumina, Alumina Hydrate and related products. The Aluminium segment covers the aluminium ingots, wire rods, billets, strips, rolled and related products. The company was founded on January 7, 1981, and is headquartered in Bhubaneswar, India.
Technically on weekly charts if we draw the trendline from the highs of Mid-week of January 2023 (Rs 86.55) and Mid-week of March 2023 (Rs 85.80) we get the trendline of continuation pattern named “Bull Flag pattern” and trendline drawn from the lows of first week of February 2023 (Rs 75.65) and first week of May 2023 (Rs 79.20) is the bottom side of flag pattern which is also supported by 26 week moving average. Low of this Flags pole is Rs 66.95 which made in last week of September 2022. Considering all these levels, minimum possible targets of this pattern will be around Rs 100 which is more than 14% higher from the breakout level (Rs 86).
On daily charts, stock is consolidating in a range from April 19, 2023, and today stock breached this consolidation pattern and registered a breakout. Currently it is trading around Rs 85 level and ready to close around the day’s high which will confirm the breakout. Today’s candle engulfed the last 26 day’s consolidation move with strong volumes of nearly 26 million which is above average of last 50 days. The stock is trading above all its key short-term and long-term moving averages.
A close above Rs 86 will confirm the breakout on both daily and weekly charts. Therefore, traders should keep an eye on this stock for the upcoming sessions.