Skf India: Forming A Cup Without Handle Base On Higher Volume

Posted Date: May 26 2021

Skf India stock has cleared a 14-week, 18% deep Cup Without Handle Base this week. Currently, the stock is trading around just -3% away from its ideal buy price of INR 2512. The stock is offering investors an opportunity to get on board at the current price.

 

The stock ended the week on a bullish note. It closed 5.45% up on a 218% 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 7.88% away from the 10-week moving average.

 

In the last twelve months, Skf India has rallied nearly 71.1% as compared to 59.4% for the Nifty500. It has a Relative Strength Rating of 58. 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 Skf India can maintain this outperformance, it could make sense as a CANSLIM trade.

 

Skf India stock has a strong institutional support. The Accumulation/Distribution Rating of 'A+' represents heavy institutional buying over the past few weeks. Although the shares held by institutions dropped in the last quarter, the number of institutions holding the stock increased at the same time. This shows increasing interest among the institutions.

 

On the earnings front, Skf India has an excellent EPS Rank of 87, which indicates consistency in earnings. The earnings and sales for the stock have seen the-growth of -8% and --6%, respectively over the past three years. Its 3-years earnings stability is 15, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 6% and 1%, respectively. The 5-years earnings stability is 18. The return on equity for the last reported year is 17%.

 

The current price of Skf India is -3% off from its 52-week high price and 75% above its 52-week low price. The stock belongs to the industry group of Machinery-Gen Industrial, which is exhibiting excellent strength in the current market environment. The current industry group rank is 33.

 

The stock appears on our idea lists: Trend Template - 5 Months.

 
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