BIG BREAKOUT !!

Concor Ltd- Long awaited 6 years consolidation breakout.... 

This stock has been on roll for the last couple of months. The stock witnessed a sharp and strong rally where price rallied from 350 to 600 plus in a matter of few months. The sharp move has led the price to hit new life this month. The outperformance in the stock may continue ahead. The basis and technical studies have been discussed below.

The chart attached below is the monthly chart of CONCOR which highlights the breakout from the long sideways range. This year has been a great year for the stock so far and looking at the technical setup i believe stock likely to do well in the upcoming months. The stock price experienced a strong rally from Aug 2013 to Jun 2015 where prices rallied from 200 to 620 which is a fantastic move. However, post that the stock underwent consolidation which continued for almost 6 years, and this month price registered breakout from the same has surpassed the multi-year supply zone of 620-635 which is a bullish signal for a medium-term trend.

The breakout from prolonged consolidation indicates the stock has entered into a new trading range and the price likely to stage higher in the coming weeks and months. The positive point which provides confidence and increases the reliability of the breakout is the Price-Volume action. The Big size and above-average volume bars with rising price trends indicate big players showing interest at the elevated levels and such behavior displays strong strength in the trend. 

The second chart shown below is the ratio chart of CONCOR/NIfty which generally helps to gauge the strength in the stock in comparison to the Benchmark Index. After analyzing the absolute chart of the stock it is also important to have a look at the relative chart for further confirmation and to increase the odds in our favor. 

The ratio chart has reversed sharply from the support zone where historically ratio has found the support has rallied higher. The sharp move in the ratio from the support zone compliments a bullish view on price and indicates the stock likely to outperform the index in the coming weeks and months to come.

Thus from the above analysis, I believe CONCOR is likely to do well in the coming weeks and the view discussed above if materializes well on the expected line, the stock has the potential to test 750-825-910 levels in the short to medium term. While on the lower side, the strong support zone is placed around 630-600. 

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