Price and Volumes breakout!

 PRESTIGE - Bulls set to show its power?!? 

The Reality stock has been in strong momentum for the last many weeks and the buzz seems likely to continue ahead. From the Reality basket, I like Prestige Estates which all the ingredients to qualify as a buy candidate with favorable Risk-Reward in place. 

The stock has been on my radar for the last few days and has been tracking closely and now I believe the stock is set to see some decent up move in the coming weeks. The stock has reversed from the confluence of support and has given a breakout with a sharp rise in volumes. Analyzing the longer-term charts, the stock has been trading and seems following one of my favorite patterns which I like to focus on.

The chart attached below highlights that stock has been trading in the Parallel channel for the last many years. The stock forms a significant bottom and top near the channel trendline and Median line trends to provide the support/resistance depending upon the trend. The present trend with a perspective of short to medium term seems bullish and the Median line is acting as an important support for the stock price. If History tends to repeat (which in my view it will) price likely to scale towards the north to test the higher trendline of the channel.

The next chart attached shows how 20WEMA has provided strong support earlier and dip in price has arrested near the same. Also, the recent up move has led the price to surpass above 50% retracement levels of its previous decline with a sharp surge in volumes and formation of bullish wide candlestick pattern which adds confidence in the price action. Furthermore, the price has recently reversed taking support at an upsloping trendline which adds further support to the price.  

For the last many week's prices has been consolidating near Magic Bands (Green Colour) and has provided strong support to the price. From recent price action, it seems the consolidation is completed or the price has gathered the strength and is set to rally higher.

The below chart is the Ratio chart of Prestige Estate & Nifty Realty index, which Signals the Ratio has dropped to an important support zone from where the Ratio has inched higher historically. The ratio chart also compliments the bullish view on price and hints Prestige Estate likely to outperform its index. The overall price structure has been also throwing the same signal as discussed above.

Thus following the above studies and Technical Tools I believe the stock has more leg to rally on the higher side. The short and medium term charts denote good strength in price and bulls likely to take the charge going forward. The levels on the higher side to watch out 330-355-390. On the lower side support is visible around 280-268. The above-mentioned view voids if the price closes below 259.

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