Stocks on the verge of multi-year high breakouts; What does it mean for investors?

A multi-year high breakout occurs when a stock surpasses a price level that it has been unable to breach for several years. This signals a major shift in market sentiment and often suggests the emergence of a new, long-term trend.

Four multi-year high-breakout stocks to keep an eye on

Lupin Ltd (Monthly Chart)

Shares of Lupin Ltd are currently trading at ₹2,096.60. The stock has seen a sharp up-move indicated by a back-to-back bullish candlestick since last year. The stock is on the verge of breakout of its 8-year high. As shown in the above chart the stock has already given a breakout of double bottom chart pattern in December 2023 to reach at the current level.

Over the last eight years, the stock price has reached a low of ₹504.75 and gained 316.15% from that low to now.

After crossing the mark of an 8-year high, the stock has an open sky to mark a new all-time high. It is trading at its 52-week high and it has given 94.34% returns in the last year.

Gujarat Pipavav Port Ltd (Monthly Chart)

Gujarat Pipavav Port Ltd is currently trading at ₹203.36 in an uptrend supported by good rising volume as marked on the above chart. The stock price has formed a perfect rounding pattern in the last 9 years and now it is on the verge of multi-year breakout. During the last nine years, the stock made a low of ₹45.50, and since then, it has given returns of 432.31%. The stock is trading near an all-time high, and it has given returns of 103.32% in one year.

As the stock price has not touched its 9-year high, investors should be cautious that the stock may face resistance if it does not break the multiyear high level.

Eveready Industries India Ltd (Monthly Chart)

The stock of Eveready Industries India Ltd is trading at ₹464.80 and on the verge of a 6-year high multi-year breakout. The stock has been in consolidation after the COVID-19 pandemic recovery rally, we can see on the above chart it has been in consolidation for the last 3 years. The volume bars are showing spikes as the stock is breaching its multi-year high.

The stock price had the lowest price of ₹34.30 in the last 6 years from which it has gained 1,250.87% till now. It has a 52-week low of ₹295.05 and it has given returns of 27.74% in one year.

Strides Pharma Science Ltd (Monthly Chart)

The stock of Strides Pharma Science Ltd is trading at ₹1,185.70 and has breached its 7-year high multi-year breakout and is approaching a 9-year high of ₹1,323.15. The stock has the potential to break both multi-year highs but remember that these levels can also act as resistance to the stock price. (This is not a recommendation).

Ever since the stock fell from its 9-year high it has found strong support near the ₹236.30 mark which is the low made in the last 9 years. Over the last five years, the average volume of trades has decreased as marked on the chart.

In the last nine years, it has jumped 341.74% from its lowest point of ₹236.30. The stock has a 52-week low of ₹412.10, and it has given returns of 174.93% in one year.

Conclusion

The above-mentioned stocks showed strong recoveries after a decade and reached their respective multi-year highs.