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Fresh Breakouts In Titan & Havells

December 22, 2020

We've liked the Consumer Durables space for several months now and the sector is finally accelerating to the upside in December.

Today we're highlighting major breakouts in two of the sector's top names, Havells and Titan.

Let's get into the charts and how we're trading them.

First, let's start with the characteristics of a secular leader. The best stocks (or any asset) are performing well not only on their own, but also relative to their alternatives. In the case of these stocks, we've got strong absolute and relative trends.

Here's Havells breaking out to new all-time highs with its ratio vs the Nifty 500 approaching new highs as well.

Click on the chart to enlarge view.

And Titan making new absolute highs and approaching new relative highs.

These stocks are in multi-decade uptrends but have been consolidating sideways for the last couple years. With prices emerging to new highs, we now have confirmation that buyers are back in control and that these stocks are ready for their next legs higher.

And more importantly, we have a well-defined level to trade against.

As long as prices are above their former highs on an absolute basis, we can be long these stocks and looking for continued leadership in the quarters and years ahead.

We'll be discussing more stocks like this and all of the themes we're taking advantage of into year-end in today's Members-Only Conference Call.

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Thanks for reading and please let us know if you have any questions!

Allstarcharts Team

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