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The stock saw a strong breakout of the reverse Head & Shoulders pattern
Bata India Ltd stock rose more than 4% in Wednesday’s trading session and also hit the highest level of the day at Rs 1,910. The stock had hit an all-time high in November 2021 and subsequently entered a slight downward trend. Additionally, it jumped more than 15% from its recent low.
On Wednesday, the stock saw a strong breakout of the Head & Shoulders Inverted pattern on the daily chart with a significant bullish candle. The stock is trading above its long-term moving average i.e. 200-DMA and also giving a strong break to its 50-DMA on Wednesday. This pattern indicates a clear short-term uptrend in the stock.
All major indicators confirm bullish directions in all timeframes. The 14-period RSI is up and has broken above its previous high. It broke through the 50 mark and is showing bullish momentum. The MACD line is trading above its signal line and zero line, indicating a positive trend in the stock. Moreover, the MACD histogram is steadily increasing and is above its previous high.
The stock’s short-term trend is extremely bullish. It is likely to continue its bullish momentum for a few more days. Moreover, it is planned 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 bullish momentum.