Multi Commodity Exchange (MCX) shows technical breakout; experts eye Rs 5,800 target in short-to-medium term.
The stock of Multi Commodity Exchange Ltd (MCX), which operates in the financial services sector, has caught the attention of technical analysts after giving a breakout from a falling trendline resistance on the daily charts. This move is being seen as a positive signal for potential upside in the short-to-medium term.
Despite being down over 20% from its December 2024 high of Rs 7,046, MCX appears to be regaining momentum. The stock recently closed at Rs 5,439 on April 11, 2025, suggesting that it is now in recovery mode after a prolonged correction.
Technical experts believe that the breakout could take MCX towards a target of Rs 5,800 in the coming weeks.
The falling trendline resistance had previously acted as a strong barrier, restricting upward movement. With the recent breakout, that resistance has now turned into support, offering a more favorable risk-reward setup for traders.
Opportunity for Traders
For those watching technical indicators, this development offers a potential trading opportunity. As per expert suggestions, short-to-medium term traders can consider buying MCX with a defined target of Rs 5,800.
This setup is particularly appealing to traders looking for breakout trades with limited downside and defined stop-loss strategies.
The breakout not only brings MCX back into focus but also revives interest in stocks from the financial services segment, which had been relatively subdued in recent sessions.
While momentum had faded after the December highs, the new chart pattern suggests a shift in sentiment, with technicals hinting at a possible trend reversal.
