NRB Bearings breaches prolonged rectangular pattern, hits 52-week high

NRB Bearings Ltd, a maker of ball and roller bearings, hit its 52-week high at Rs. 165 per share on Friday, December 15, with more than 3.88 times spurt in its volumes. Technically, the stock has been trading in a rectangular pattern, ranging 100-160 levels since mid of March 2015. Meanwhile, the stock attempted a breakout of 160 levels during November and December 2015, but could not sustain above the said levels on a weekly closing basis.

Eventually, the stock has broken out of this prolonged multiple resistance range of 154-160 levels with volumes breaching its July 2017 volumes on weekly basis. Stocks Oscillators like 14-period RSI gave multiple resistance breakout at 70-71 levels and is quoting at 72.60. Though over-bought, the stock has a tendency to give exuberant rallies when in the over-bought zone.

On a daily time frame, the stock has been trading with higher tops and higher bottoms after making a Doji on August 11 with RSI positive crossover on the oversold zone. Recently, RSI has just entered the 70 levels and stochastics and MACD have given positive crossover quoting at 66 and 3.7 levels, respectively. With this, the stock holds a great potential upside of at least 50-60 points, if it sustains above 162 on a closing basis.