Double bottom-like pattern breakout seen in Hindustan Copper

The stock has surged nearly 4% today and trades near the day's high of Rs 140.

The technical chart of Hind Copper is quite interesting as it has confirmed the breakout of its double bottom-like pattern. The stock took support at around Rs 110 twice and had taken out its prior swing high at Rs 133. However, it was not able to gain momentum thereafter and consolidated near its prior swing high.

The stock has surged nearly 4% today and trades near the day's high of Rs 140. Moreover, it has recorded a huge volume which confirms the breakout. Along with this, the stock also trades above its key 200-DMA. To support the bullish claim, the RSI has jumped to the bullish territory, while the rising ADX suggests a strong uptrend of the stock. Along with this, the stock has also outperformed the broader market in the short and medium-term. Considering the pattern breakout and bullishness of the stock, the stock is expected to trade higher in the range of 155-160 in the short to medium term.

In the past year, the stock has delivered about 120% returns to its shareholders. Also, its short-term performance is phenomenal and has returned about 10% in just one month.

Considering its strong performance, the institutions hold about 16% of the stake which is at par with the public holdings. Almost two-thirds of the stake is controlled by the promotors.

With a market capitalization of over Rs 13000 crore, it is one of the most promising midcap companies which has higher growth potential. Hindustan Copper Ltd works in the process of mining copper ore, smelting, refining, and extruding the copper concentrate into refined copper. It is the only operating copper ore producing mining company in India. With such a monopoly in the business, the company is bound to have immense growth opportunities in times to come.

With the stock being technically strong, it deserves to be on trader’s watchlist.