After forming its most recent high point in the last quarter of 2021, JUBLFOOD has been under a corrective decline. The stock has shown retracement from its highest price point and has been in a falling channel for the last eight months. Some developments on the technical charts show that the stock may hold some potential of reversal; it may put a base for itself for at least for the short term.

Let us subject this daily chart to basic pattern analysis and see what this chart has to tell.  From the high point of 916 seen in the last quarter of 2021, the stock stayed under a corrective decline; it tested its most recent low point near 450 during the month of May.

Interesting here to note is the fact that while the stock made a lower low of 450.25 (as compared to the earlier low point of 487), a strong bullish divergence is observed on the RSI as while the price made a lower low, the RSI did not violate its earlier low.

The current moves in the price had led to the formation of a symmetrical triangle pattern; this is usually a neutral pattern and can resolve on either side. However, if this is read with the bullish divergence of the RSI, it shows that there is larger possibility of the price moving higher over the coming days.

The RS line has stopped falling; it has reversed the trend and it moving higher and is above the 50-DMA.

There is a possibility that if the prices move as expected and if the technical evidence plays its role, the stock may test 580 and 700 levels over the coming days. The present form of the symmetrical triangle will break down if the price close below 500.

Foram Chheda, CMT