The railway stock connotes one of the assumption of technical analysis of history repeats itself.
The price action on the daily outlook is currently replicating its previous price pattern.
The stock displays a healthy primary uptrend.
The price action has entered into a brief consolidation phase following a 707% run-up from June 2022 lows which is a positive sign.
This potentially indicates addition of smart money participation to bolster its primary uptrend.
The latter half of the ongoing consolidation comes with a higher high and higher low structure along with signs of momentum spark. This indicates that the intermediate trend is garnering strength.
The price action has immediate support at its 50 daily MA and 20 weekly MA.
The 50 period volatility on the daily outlook trades at its lower levels diminishing the probability of unruly moves.
IRCON is showing improving EPS strength, high relative strength compared to the 50 index and buyers’ demand.
We recommend to buy IRCON from CMP-269 for the target of 321 with a protective stop at 248.