irb infrastructure developers share price: Chart Check: 30% rally in a month! What should investors do with this stock from construction space?

IRB Infrastructure Developers Ltd, part of the construction space, has rallied by over 30% in a month and could well hit fresh record highs in the next 3-4 weeks, suggest experts.

Short-term traders can look to buy the stock for a target of Rs 40, they say.

IRB Infrastructure stock rose from Rs 26 as on 11 August 2023 to Rs 34.10 recorded on 11 September 2023 which translates into an upside of about 30% in a month.

The stock hit a record high of Rs 35 on 22 February 2023 but it failed to hold on to the momentum. It found support above 20 levels in March 2023. The stock witnessed some consolidation in the July-August period but it saw a vertical move in the last 3 weeks.

The stock witnessed higher highs and higher lows for the past 3 weeks which pushed the stock above the 50-Week Moving Average on the weekly charts.

It also gave a breakout above the Ascending Triangle pattern on the weekly charts. A symmetrical triangle is commonly considered a continuation pattern. The neckline of the pattern was placed around 30 levels.

Also Read: Symmetrical triangleIn terms of price action, the stock is trading below the 5-DMA on the daily charts but above 10,30,50,100 and 200-DMA.

ET CONTRIBUTORS

The daily Relative Strength Index (RSI) is at 79.8. RSI above 70 is considered overbought. This implies that the stock may show a pullback. The daily MACD is above its center and signal Line, this is a bullish indicator.

“The IRB Infrastructure stock showcases a commendable upward trajectory. Since October 2021, the stock has demonstrated graceful correction by preventing any formation of lower highs and lower lows,” Omkar Patil, Technical Research Associate at GEPL Capital, said.

“Currently, it is trading at multi-year peak levels, IRB’s momentum remains robustly positive. Just recently, a breakout from the Ascending Triangle pattern has been observed, further affirming the stock’s sustained bullish trend,” he said.

“The RSI on the weekly chart underscores this momentum, highlighting a surge in price strength,” highlights Patil.

“Going ahead, we expect the prices to move higher till 40 levels in the next few weeks, where the stop loss must be 31.5 strictly on the closing basis,” he recommends.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

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