Chart Check: Jubilant FoodWorks hits fresh 52-week high in December; what does the chart foretell – will the rally sustain?

Jubilant FoodWorks, part of the restaurant industry, rallied about 10% in a month which helped the stock to breakout from a Symmetrical Triangle pattern and hit a fresh 52-week high in December 2023.

Short-term traders can look to buy the stock for a possible target of Rs 650 in the next 2-3 months as long as it trades above Rs 480, suggest experts.

The stock hit a 52-week high of Rs 576 on December 4, 2023. Jubilant Foodworks’s weekly average delivery volume is 59.46%, Trendlyne data showed.


The stock plunged by over 50% from the high of Rs 915 recorded on October 13, 2021. It finally found support above 400 levels in May 2022.

The stock retested this crucial support in March and April 2023 before resuming its upward journey. The stock recently reclaimed its 50-DMA on the daily charts in November, and the Supertrend indicator also triggered a buy on November 23.

In terms of price action, the stock is trading below the 5-DMA and above the 10,20,50,100 and 200-DMA on the daily charts, which is a positive sign for the bulls.

The daily Relative Strength Index (RSI) is placed at 69.2. RSI below 30 is oversold and above 70 is considered overbought, Trendlyne data showed. The daily MACD is above its center and signal Line, a bullish indicator.

“Jubilant FoodWorks was one of the worst underperformers from October 2021. It has corrected over 55% wealth in one and half year time frame, the stock price went down from 920 odd all-time high to a 52-week low around 410 in March 2023,” Kiran Jani CIRA, Head of Technical Research at Jainam Broking Limited, said.

“Post registering a 52-week low around 420, stock prices started rising and made a big symmetrical triangle pattern,” he said.

“Since March 2023 we are seeing prices start moving up in a higher top / higher bottom pattern and registered a 35% gain in the last 8 months. At the current juncture, we can see a bullish price pattern breakout with bullish divergence visible on the chart,” highlights Jani.

The price has formed an ascending pattern and is trading into a rising channel. And within that, we are seeing trading above its 50 SMA and 200 SMA after a long time.

“Initially, we saw that 200 SMA was very stiff resistance. Looking at the relative strength index (RSI-14) shows multiple bullish divergences. Considering the current chart pattern, we are expecting prices to touch 650 if prices hold 480 levels,” he recommends.

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