These three stocks are flashing strong technical signals.
SEBI-registered analyst Kavita Agarwal has spotted breakout potential in three stocks. The technical charts suggest room for further upside in Avalon Technologies, Datamatics and KIMS, driven by volume support and other bullish indicators.
Let’s take a look at her recommendations:
Avalon Technologies
On its weekly chart, Avalon has been on a steady uptrend since listing within a clear price channel. The stock is currently testing key resistance, and the analyst believes that a breakout could fuel the next rally. The weekly, daily, and 75-minute timeframe charts indicate a bullish “eclipsing” pattern.
On its daily chart, the Relative Strength Index (RSI) has turned positive after struggling below 60, with higher highs and substantial volumes. She added that multiple pullbacks offered re-entry points, and recent accumulation hints at further upside.
Agarwal identified support at the 20-day Exponential Moving Average (EMA) of ₹865, with the long-term backing at ₹788. Resistance is seen at ₹1,167.
Datamatics Global Services
On its weekly chart, Datamatics has broken a long-term trendline, which shows bullish continuation. Strong volumes and bullish RSI support this outlook.
The stock has rallied 74% in two months, and Agarwal believes that it could surge another 60% ahead.
She identified resistance at ₹1,679, with support below 20-day EMA at ₹918. Agarwal cautioned that while the stock is in a strong uptrend, traders must manage position size due to elevated risk (max allocation: 3% of portfolio).
Krishna Institute of Medical Sciences (KIMS)
On its weekly chart, KIMS has shown a strong upward trending channel with accelerating momentum. Additionally, rising volumes confirm the bullish bias.
In the near term, though it is seeing a correction, Agarwal added that it is not a major concern as the stock is approaching a previous peak, which is a crucial zone to watch.
She suggests a potential entry zone at ₹680 (100 EMA + peak support), with the positional backing below the last major swing low. Traders are advised to wait for the stock to hit ₹680 for confirmation.
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