3 tyre stocks hit new highs on breakout; charts show up to 21% upside ahead

Selective tyre stocks are displaying resilient chart structures, poised to scale higher levels from a medium-term perspective.

Selective tyre stocks were spotted reaching new highs, indicating a build-up of robust momentum. Shares of CEAT, JK Tyre & Industries, and Goodyear India clinched to a new historic peak, determined to scale further highs in the coming sessions. 

The optimistic move emerged following the launches of vehicles by Hero MotoCorp, Bajaj-Auto and Maruti Suzuki lately. While Apollo Tyres, MRF and TVS Srichakra have yet to claim their fresh leg of upside, the underlying trend persists to see accumulation.

Here’s the technical outlook of tyre stocks amid striking new peaks:-

CEAT Limited (CEATLTD)

Likely target: Rs 3,000

Upside potential: 21%

Shares of Ceat have a breakout of a “Golden Cross” pattern, with the stock price surpassing the previous historic peak of Rs 2,185, as per the daily chart. This optimistic move has paved the next leg of upside, with price objective emerging closer to Rs 3,000-mark.

The present chart structure remains quite optimist of an upward bias, with the support of Rs 1,860, which keeps on bolstering the higher highs. While the recent price action has seen the Relative Strength Index (RSI) entering the overbought territory, the present momentum suggests trend to garner more bullishness ahead. Immediate support exists at Rs 2,100-level. CLICK HERE FOR THE CHART

JK Tyre & Industries Limited (JKTYRE)

Likely target: Rs 300

Upside potential: 16%

Shares of JK Tyre & Industries have been under selling pressure near Rs 215 to Rs 210 levels. When this hurdle range was surpassed, the trend witnessed a resilient up move that may further see bullish momentum from a short-to-medium term perspective. 

As of now, the stock is trading in the overbought category of the Relative Strength Index (RSI), implying a price action that is determined to absorb all the sell-off. The current bias is hinting at Rs 300-level, as per the daily chart. CLICK HERE FOR THE CHART

Goodyear India Limited (GOODYEAR)

Likely target: Rs 1,410

Upside potential: 10%

Shares of Goodyear India have set a new 52-week suggesting that the optimistic momentum to carry more upside. Until the support of Rs 1,197, which is its 50-DMA, is shielded on closing basis, the trend is likely to upbeat any sell-off.  A positive move supported by strong volumes over Rs 1,280 level could witness upside move in the direction of Rs 1,410 levels. 

Stability over the Rs 1,200-level shall build robust bullish sentiment. The “Higher High, Higher Low” pattern continues to scale higher, experiencing accumulation at critical supports, as per the weekly chart. CLICK HERE FOR THE CHART