Shares of Bajaj Auto today hit a 5-month high, and the chart indicates further upside. The company shares gained as much as 1.97 per cent to Rs 3,155, their highest since February 16.
The stock has broken above a resistance at Rs 3,101.2, the 23.6 per cent Fibonacci resistance level of the uptrend from April 30, 2015 low to February 2, 2018. The breakout suggests that the stock may now test the next resistance at Rs 3,299.7, the 38.2 per cent projection level of the uptrend.
Trend intensity (TI) indicator has gone up to 20, suggesting that the stock is in early stages of an uptrend. MACD is also positive and above its signal line. The stock's five-day average volume was 62 per cent higher than its 30-day average, seen favourable for an upward move.
The stock’s wave pattern suggests it is in the initial sub-wave of a five-wave uptrend that will form the third wave '(3)' of the primary five-wave uptrend. Bajaj Auto stock had fallen 7.2 per cent this year as of Tuesday, while the broader NSE Index was up 3.96 per cent in the same period.
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