Traders bet on Prince Pipe as it soars over 5% on August 05!

PRINCEPIPE soars over 5% to surged above its 100-DMA.

The stock of Prince Pipe and Fittings Ltd has jumped over 5% during the initial hours of Friday’s trading session. With this, it has registered a breakout from its ascending triangle pattern with heavy volume. The volume is greater than 30-day and 50-day average volume. It was undergoing a consolidation in a range of Rs 580-620 but witnessed strong buying at lower levels. Interestingly, it has crossed above its 38.2% retracement level of its prior downtrend. Moreover, it crossed above its 100-DMA on Friday. Thus, the price structure is quite bullish

Along with the price structure, the technical parameters show strong strength in the stock. The 14-period daily RSI (67.05) indicates strong strength in the stock and is in the bullish territory. It is above its prior swing high. Moreover, the ADX (13.97) is in an uptrend and shows improving trend strength. The MACD line is above the zero line and signal line. The OBV has also registered a breakout from its falling trendline, which is a bullish sign from volume’s perspective. The Elder Impulse system indicates a fresh buy in the stock, while the TSI and KST shows an improvement. It is currently about 7% above its 20-DMA. Overall, the stock looks technically strong considering the above points.

As per the pattern breakout, we can expect this stock to test the level of Rs 700 in times to come, followed by Rs 730 in medium term. It shows a good trading idea for near term for the traders, and one can expect good gains in short to medium term. Include it in your watchlist to keep an eye on this stock.

Prince Pipe and Fittings Ltd is engaged in polymer pipes and fittings for plumbing, irrigation, and sewage disposal. With the market capital of about Rs 6700 crores, it is one of the strongest midcap company of its sector.