Chart Check: 18% returns in a month! This household appliance maker gave a breakout above falling trendline

Voltas, part of the consumer durable industry, has risen by about 18% in 1 month which helped the stock to break out from a falling trendline resistance that has opened room for the stock to head towards Rs 1,000.

The stock price of Voltas, which makes household appliances, has rallied from Rs 776 recorded on January 23 to Rs 914 as on 22 February 2023 which translates into an upside of about 18%.

However, from its 52-week high, the stock is still down more than 30% which effectively places the stock in a downtrend. But, the recent momentum seen in the stock suggests that bulls are trying to take control.


The stock gave a breakout above the falling trendline which connects the highs of December as well as January 2023 on the daily charts. The up move has come with strong volumes.

On the weekly charts, the stock has been forming higher highs and higher lows with strong volumes which suggests strength in the up move.

In terms of price action, the stock is trading well above short and long-term moving averages placed at 5,10,20,30,50,100, and 200-DMA which is a positive sign for the bulls.

“Stock price of Voltas has taken support at its previous resistance zone on a monthly scale and formed a reversal candle with follow-up buying seen in the counter. It is also forming higher highs – higher lows on a weekly scale from the past four weeks with noticeable volumes,” Arpit Beriwal, Analyst, Equity Derivatives & Technicals, MOFSL, said.

“It has given a falling supply trend line breakout on daily scale and started to form higher highs – higher lows as supports are gradually shifting higher,” he said.“The stock has also seen a moving average crossover on a daily scale which has bullish implications and stock is likely to outperform the broader market,” added Beriwal.

Relative Strength Index (RSI) is also moving northwards which suggests momentum is likely to continue in coming sessions and thus looking at the overall chart structure on the weekly scale.

We expect the stock to move higher towards Rs 1,000 level. We recommend buying the stock at current levels with a stop loss below Rs 875 level on a closing basis for an upside move towards Rs 1,000 zone,” recommends Beriwal.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)