Breakout stock for Swing Trade – Garware Technical Fibres (NSE:GARFIBRES)
Garware Technical Fibres Ltd. (NSE:GARFIBRES) (BSE:509557) works in the textile domain and is a leading manufacturer of technical fibres like fishing and agricultural nets, coated fabrics, polymer ropes and geosynthetics.
The stock gained nearly 40% from its 52 week low, however due to overall negative sentiments in the market, Garware’s share price declined. Today however, the stock closed 5.82% higher than the previous day and the volume was relatively higher compared to past week.
Garware Fibres has taken support from its previous resistance zone of 3625, forming a flip pattern. Flip pattern is basically resistance becoming a support zone, and this pattern works well for swing trades. The stock is now heading towards 4135 which is its next immediate resistance. This resistance zone has already been tested multiple times and is now weaker.
GARFIBRES is also accumulating near this resistance, and when this happens, the stock is most likely to break the resistance. It shows strength in price as traders are not letting the stock go below a particular level and buying every dip.
White Marubozu candle formed today shows a possible bullish momentum in the stock in the coming days. BTST traders can expect 3 to 5 percent gains in the coming one or two days. Intraday traders can check detailed daily forecasts for Garware Technical Fibres.
Technical Strengths
- Stochastic in Bullish reversal
- Stock above upper Bollinger band
- RSI showing strength
- CCI trending bullish
- 5 SMA crossing 20 SMA
- Relative Strength improving compared to Nifty
Garware can reach targets of ₹ 4450 and ₹ 5020 in coming months, which presents us an opportunity to capture potential gains of 25% in swing trade. Consensus estimated target is ₹ 4050, and Stop loss of ₹ 3530 is a must for safety.
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