Chart Check: Falling channel breakout on daily charts makes this steel stock an attractive buy

Jindal Steel & Power (JSPL), part of the iron & steel industry, is slowly inching higher and gave a breakout above the falling channel with strong volumes on daily charts.

The breakout has opened room for the stock to retest February 2023 highs and go beyond that, suggest experts. The stock hit a 52-week high of Rs 622 on 1st February 2023 but failed to hold on to the momentum.

After hitting a record high in February 2023, the stock failed to hold on to the momentum. It has moved in a channel formation since then. The momentum helped the stock to break out from the upper channel line on 19 April 2023 is a bullish sign.


The stock rose more than 3% in a week and over 30% in the last 6 months.

The momentum helped the stock to form a bullish candle on the monthly scale and retest its previous breakout zone on a weekly scale.

In terms of price action, the stock is trading well above most of the short and long-term moving averages such as 5,10,30,50,100 and 200-DMA on the daily charts.


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“The stock has formed a bullish candle on a monthly scale and retested its previous breakout zone on a weekly scale. It is forming higher highs – higher lows on a weekly scale from the past three weeks and supports are gradually shifting higher,” Arpit Beriwal, Analyst, Equity Derivatives & Technicals, MOFSL, said.

“It has given breakout from its falling channel and formed a Bullish candle on the daily frame with noticeable volumes,” he said.

The stock has managed to close above 50-DEMA and momentum is picking up as RSI (relative strength index) is moving higher towards 60 zones.

Good momentum is seen in Metal stocks and the stock is likely to outperform in the coming sessions.

“Thus looking at the overall chart set up we expect the stock to move towards Rs 630 zones in coming days with keeping stop loss below Rs 555 on a closing basis,” recommends Beriwal.

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