Morepen Labs stock has broken out of a 6-week, 27% deep Cup Without Handle Base 4-weeks ago. However, the stock is still offering investors an opportunity to get on board as the current price is only -2% away from the ideal buy price of INR 72.
The stock ended the week on a bullish note. It closed 12.2% up on a 89% greater volume than the 10-week average. You want to see a strong close on heavy volume like this before initiating a position. That signals institutional buying. You would also want to see the same price volume momentum to continue in the coming weeks.
The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 12.67% away from the 10-week moving average.
Morepen Labs has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 86. In the last twelve months, the stock has rallied over 204.7% as compared to 47.7% for the Nifty500.
The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last four weeks. The overall long term trend of the line is also trending upward. If Morepen Labs can maintain this outperformance, it could make sense as a CANSLIM trade.
On the earnings front, Morepen Labs has an excellent EPS Rank of 97, which indicates consistency in earnings. The earnings and sales for the stock have grown by 48% and 23%, respectively over the past three years. Its 3-years earnings stability is 25, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 34% and 18%, respectively. The 5-years earnings stability is 24. The return on equity for the last reported year is 27%.
The stock belongs to the industry group of Medical-Diversified. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 98. The current price of Morepen Labs.Lt is -6% off from its 52-week high price and 268% above its 52-week low price.
The stock appears on our idea lists: Trend Template - 5 Months