Breakout stocks of the day: BF Utilities and Skipper

With price volume support, BF Utilities and Skipper are strong bullish breakout potential stocks. The stock prices have displayed a breakout and bounced back from support, and both presently trading at Rs 783.85 and Rs 315.50. The breakout and bounce back align with positive signals from technical indicators such as RSI, ADX, and other key metrics, reinforcing the likelihood of continued upward momentum.

BF Utilities Ltd

Daily chart of BF Utilities Ltd

BF Utilities is currently displaying sustained bullish momentum on the daily chart, characterised by a notable breakout of double bottom. This breakout is supported by the good volume observed 5 days back, highlighting active buyer participation with substantial daily volume today.

Wednesday’s trading session began at Rs 735 and reached a peak of Rs 813. After touching point C the stock has successfully breached the neckline of the double bottom chart pattern, indicating a potential start sign of the long-term uptrend.

The current stock price is trading above its prior high, driven by increased volume during a particular trading session, indicating that investors are interested in up moves. The stock price has broken the neckline with a gap-up opening, it may set BF Utilities up for a stronger positive trend shift, and the accumulated volume suggests further growth soon. The bounce from the near-lower support, emphasises the stock’s effort to establish new highs.

On the RSI chart, the relative strength index crossed the level of 80 with a strong upsurge, and ADX trading at 21 indicates good directional strength, favouring a few sideways movements. In the event of a retracement, it is essential to monitor key support levels, particularly at Rs 700. The minor upper resistance is at a 52-week high, and the overall favourable structure is maintained as the stock consistently trades above crucial moving averages, affirming a sustained long-term upward trend.

BF Utilities Ltd engages in the business of wind power generation and infrastructure.

Skipper Ltd

Daily chart of Skipper Ltd

Skipper’s current stock performance is characterised by a strong green candle trading at Rs 315 and has the potential to continue this strong uptrend, accompanied by a significant increase in trading volume today. Currently, the stock price is breaking a short flag-like structure and acting on the same trajectory to move higher.

Starting at Rs 294 on Wednesday, the stock reached an intraday high of Rs 318. The last five days’ upsurge is notable as they followed 3 days of consolidation, suggesting a likely continuation of the bullish trend if the price manages to close above new higher highs.

The next level of the breakout occurred with a closing of the day candle above the all-time high, indicating bullish momentum. After reaching its 52-week high, the stock may witness a rapid ascent in the day trading sessions, following sustained levels near Rs 320. The current market action is supported by a surge in price volume, surpassing the typical trading day volume.

The relative strength index (RSI) recently traded in a bullish range at 73.74, suggesting the potential for a significant upward movement in the stock price is still there, particularly as it continues to trade above this level. The ADX, currently at 25, indicates good directional strength with smaller sideways movement. The 50-days Exponential Moving Average (EMA) serves as a crucial support level during larger corrective movements after breakout, and the overall market structure favours traders if the stock consistently trades above major moving averages.

Skipper Ltd. engages in the manufacture of electrical transmission towers and polymer pipe.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.