JM Financial registered a strong price volume breakout! What does it mean for swing traders?

JMFINANCIL has jumped over 6% during Thursday’s trading session

The Indian indices faced a sell off from higher levels amidst weekly expiry volatility. Meanwhile, stock specific action continues at D-street as strong buying is witnessed in some midcap and Smallcap stock. The stock of JM Financial has seen strong buying emerging from lower levels as it shot up over 6% and has registered a strong price volume breakout. It had been consolidating for over 8 weeks. Meanwhile, volumes rose for third consecutive week, and Thursday’s volume is found to be greater than 30-day and 50-day average volume. Moreover, this NBFC stock has risen above its 38.2% retracement level of its prior downtrend. With today’s strong price action, it has surged above tis 200-DMA and looks bullish for medium term.

Along with its positive price action, the technical parameters indicate strong strength in the stock. The 14-period daily RSI (64.87) is above its prior swing high and is in the bullish zone. The MACD histogram is on a rise, which indicates potential upside. The OBV shows rise in participation levels. The Elder Impulse system has charted a bullish bar and shows fresh buying interest in the stock.  The KST and TSI indicators also show improving strength in the stock. Currently, the stock is over 3% above its 200-DMA while it is 6% above its 20-DMA level. In a nutshell, the stock is technically strong and is expected to trade higher in times to come.

In the past 3 months, the stock has jumped over 10% and has outperformed its peers. For swing traders, the stock can provide good trading opportunities as momentum looks strong. One can include this stock in their watchlist to track its further development. 

JM Financial is a midcap NBFC, offering a wide range of financial services which include investment banking, institutional equity sales, trading, research and broking, asset management, etc.