Jsw Steel is just 5% away from a pivot point

Jsw Steel stock is worth watching as the stock is forming a 12-week, 16% deep Consolidation Base. The current price is only 5% away from its ideal buy price of INR 773. Aggressive investors could use any tight area breakout inside the base as an opportunity to initiate a small position. A conservative approach may be to add the stock to your watchlist so that you are ready to pounce if it breaks out to the traditional entry point.

 

 The bigger picture, the long term average (40-week moving average) is in an uptrend. The 10-week moving average is above the trending 40-week moving average. The stock is trading around 5.61% away from the 10-week moving average.

 

In the last twelve months, Jsw Steel has rallied nearly 234.6% as compared to 44.4% for the Nifty500. It has a Relative Strength Rating of 72. We definitely would like to see improvement in the rating. At this point we are taking a step back and focusing on the RS Line.

 

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 Jsw Steel can maintain this outperformance, it could make sense as a CANSLIM trade.

 

Another key part of the jigsaw is institutional sponsorship. Jsw Steel has an Accumulation/Distribution Rating of 'B+'. This represents heavy institutional buying over the past 13 weeks. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.

 

On the earnings front, Jsw Steel has an excellent EPS Rank of 94, which indicates consistency in earnings.  Over the past five years, the earnings and sales for the stock have grown by 20% and 10%, respectively. The 5-years earnings stability is 80. The return on equity for the last reported year is 19%.

 

The current price of Jsw Steel is -3% off from its 52-week high price and 242% above its 52-week low price. The stock belongs to the industry group of Steel-Producers, which is exhibiting excellent strength in the current market environment. The current industry group rank is 24.

 

The stock appears on our idea lists: Minervini Trend Template.