Laurus Labs – Primed for a Multi-Year Breakout?

Technical Analysis
✅ 1. Price Structure: Higher Highs, Higher Lows

• The chart shows strong base-building over nearly 2 years following the explosive rally in 2020.
  
• Price formed a consolidation zone between ₹430–₹640, absorbing previous supply.
  
• Recent candles show tight price action and multiple Break of Structure (BOS) events — a classic signature of institutional accumulation.
  
• It is now approaching the all-time high zone (~₹720), acting as a key breakout level.
  

📊 2. Multi-Year Base Breakout Setup

• The current price action forms an ascending base, which often precedes explosive continuation in trending stocks.
  
• The price has moved up in tight bands with shallow corrections, reflecting volatility contraction — another bullish pattern.
  
• If price decisively breaks above ₹720 with volume, it could trigger a long-term uptrend continuation.
  

📈 3. Relative Strength (RS) vs Nifty

• The RS line has finally turned positive after a prolonged underperformance (2022–2023).
  
• Sustained RS strength on a weekly chart signals potential leadership behavior.
  
• The stock is now outperforming the benchmark, which is a critical filter in breakout selection.
  

📉 4. Moving Averages: Strong Alignment

• All major EMAs (20, 50, 100, 200 weekly) are now curved upward, showing a healthy trending environment.
  
• Price is comfortably trading above all EMAs, acting as dynamic support and confirming trend strength.
  
• 50-week EMA recently crossed above the 200-week EMA — a bullish long-term signal (Golden Cross on weekly).
  

🔊 5. Volume Analysis

• Volume is slightly muted but stable and consistent, indicating quiet accumulation.
  
• A breakout candle with a volume surge above the historical average would be ideal confirmation.
  
• The lack of wide-range down bars suggests distribution is absent.
  

🧠 Summary and Trade Plan
▶️ Bullish Case:

• Break and close above ₹720 on strong volume can activate a long-term trend continuation.
  
• Potential for a measured move of ~₹200–₹250, taking the stock toward ₹900–₹950 over time, if momentum sustains.
  

⛔ Bearish Risk:

• A rejection from ₹720 without follow-through, especially with increasing volume, may result in range re-entry.
  
• Invalidated if stock closes below ₹630–640 on the weekly chart.
  

🎯 Entry Watch:

• Ideal entry: Breakout + retest of ₹720 with narrowing candles.
  
• Aggressive entry: Around CMP with stop-loss below ₹630 and trail the stop as it trends.
  

🧭 Final Thoughts

• Laurus Labs is showing a mature base with breakout-ready structure. The trend strength, relative performance, and BOS stack-up make it one of the cleaner charts among mid-cap pharma names.
  
• All eyes should be on price action and volume near the ₹720 zone — this is where smart money often tips its hand.