The stock can be bought at current level and on dips to Rs 1,260 with a stop loss below Rs 1,230 for a target of Rs 1,450 levels, says Ashish Chaturmohta of Sanctum Wealth Management.
United Breweries had been in major consolidation phase over the last three years between Rs 1,230 and Rs 700 odd levels. On the long-term monthly chart, the stock has formed a bullish Cup and Handle pattern.
In addition to that, the handle formation is inverted head and shoulder pattern underscoring the bullishness of the whole technical chart structure.
The stock has seen a breakout from this pattern with strong momentum and good volumes to hit an all-time high of Rs 1,291 in Monday’s session.
The price has also given a breakout from Bollinger band with the expansion of band and closed above upper band suggesting the start of a fresh uptrend in the direction of the breakout.
The momentum indicators are in a bullish mode on short as well as on the long-term charts. Thus, the stock can be bought at current level and on dips to Rs 1,260 with a stop loss below Rs 1,230 for a target of Rs 1,450 levels.Disclaimer: The author is Head Technical and Derivatives, Sanctum Wealth Management. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.