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Hindustan Zinc Surges Past 60-Week Rectangle!
20 Jan
Summary
- Hindustan Zinc shares broke a 60-week rectangle above ₹564.
- The stock price has nearly achieved its target of ₹677.95.
- A short-term consolidation is expected due to stretched price.
Hindustan Zinc Limited has experienced a significant surge, breaking through a 60-week rectangle pattern above the ₹564 mark. This technical breakout strongly indicates a sustained upward trend in the market for the company's shares. The stock's movement has brought it very close to its calculated target price of ₹677.95, reinforcing the positive sentiment.
Despite the strong performance, market analysts point out that the current stock price is now notably distant from its 50-day exponential moving average. This suggests that the recent gains might represent a short-term extension rather than the beginning of a fresh momentum phase. Such a situation often precedes a period of stabilization.
Consequently, a phase of consolidation or a time-based correction is anticipated. This pause would allow the daily and weekly moving averages to catch up with the price action, creating a more favorable risk-reward balance for future trading opportunities. The market expert emphasized the need for this reset.
