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Lupin shares today hit more than 7-month high, and technicals suggest further upside. The drugmaker shares gained as much as 2.84 per cent to Rs 957.9, highest since January 25.
The stock broke above the neck line of a complex inverted head and shoulder reversal pattern, suggesting the primary downtrend, which started in October 2015, may have ended. It also broke above a descending trendline and a resistance at Rs 928.85, the 14.6 per cent Fibonacci retracement level of the downtrend from October 1, 2015 high to May 15 2018 low.
The breakout suggests that the stock may now rise up to the next resistance at Rs 1,055.3, the 23.6 per cent retracement level. The breakout is supported by volume. The stock's 30-day average volume is about 60 per cent higher than its 200-day average.
Trend Intensity indicator has gone up to 21, suggesting that the prices are trending upwards. MACD is also positive and above its signal line. Lupin stock had gone up 13 per cent in the last one month as of Friday's close, compared with a 2.85 per cent gain for the broader NSE Index.
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