APL Apollo Tubes Breaks Out, Attracting Swing Traders and Short-Term Investors

Joining this upward momentum, the Capital Goods sector witnessed an impressive rally, drawing attention to a specific stock from the Iron & Steel Products industry. This stock, [APL Apollo Tubes Limited](https://www.angelone.in/stocks/apl-apollo-tubes-ltd) (APL Apollo), has broken out from a continuation price pattern that lasted over three weeks.

APL Apollo is a leading manufacturer of branded steel products in India, with its headquarters in Delhi NCR. The company operates 10 manufacturing facilities, producing over 1,500 varieties of MS Black Pipes, Galvanized Tubes, Pre-Galvanized Tubes, Structural ERW Steel Tubes, and Hollow Sections. These products serve various industry applications such as urban infrastructures, housing, irrigation, solar plants, greenhouses, and engineering. Founded by Sudesh Gupta on February 24, 1986, the company is headquartered in Ghaziabad, India.

From a technical standpoint, the stock has been consolidating within a flat range, forming equal highs at Rs 1369.90 and equal lows at Rs 1298. By connecting these equal highs with the high of June 21, 2023 (at the Rs 1369.90 level) and July 11, 2023 (at the Rs 1362 level) using a trendline, we can identify a breakout trendline indicating a continuation price pattern named the Bullish Up flag pattern on the daily chart.

 Furthermore, this consolidation recently witnessed a bullish crossover of the 5-13 DMA and the 14-day period RSI, which is placed in the super bullish zone around the 63 level, further reinforcing its strength. Interestingly, the stock broke out of the mentioned pattern, closing above the breakout trendline at around Rs 1375 with the support of the 5DMA.

With the breakout level of Rs 1361 already surpassed, APL Apollo Tubes Limited has demonstrated its strength by registering the breakout. The stock has now set its sights on a potential target of approximately Rs 1565, representing a gain of around 15% from the breakout level. Swing traders and short-term investors are advised to closely monitor this stock, as it continues to exhibit robust performance and presents an enticing opportunity for further upside potential.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.