Published on: January 1, 2025
Happy New Year to all our Readers!
The 2024 has been a year of incredible opportunities in the stock market, with some stocks soaring to massive gains. Let us dive into the Top 3 Gainers of 2024 and break down how you could have easily identified these trends using simple yet powerful tools – the Moving Average Channel (MA Channel) and Point-and-Figure (P&F) Chart. But before we jump into the charts, let us set the foundation.
Step 1: Believe That “The Trend is Your Friend”
This may sound cliché, but it holds true. Trends, whether bullish or bearish, are the market’s way of telling you where it wants to go. The key is to identify that trend early and ride it. One of the most underrated tools for doing this is the Moving Average Channel. This channel, which comprises an upper and lower moving average, acts as a dynamic support and resistance level, helping you visualise the trend and identify potential breakout points.
Step 2: Recognize That Retracements Are a Normal Part of the Trend
Stocks don’t just rally in a straight line. There are retracements—pullbacks within the trend—that can be mistaken for reversals. However, these retracements are just pauses before the trend continues its course. It’s crucial to remember that a retracement doesn’t signal the end of a trend; instead, it’s an opportunity to buy into the trend at a more favourable price.
Now that we have set the stage, let us dive into the Top 3 Gainers of 2024 and break down how these stocks could have been identified early in the year using the Moving Average Channel and Point-and-Figure charts.
1. GVT&D: 300% Gain in 2024
GVT&D has been the star of 2024, delivering an impressive gain of over 300% for the year. Lets break down how you could have seen this coming:
At the end of 2023, GVT&D’s chart showed a triangle breakout above the MA Channel. This triangle formation, a continuation pattern, indicated that the stock was ready for a move higher. The breakout above the MA Channel confirmed that the trend was shifting to bullish. But here’s the kicker—throughout 2024, the stock price never closed below the MA Channel.
The Anchor column breakout on the Point-and-Figure chart at the start of 2024 confirmed the bullish trend. Every time the stock hit a minor dip (a retracement), it acted as a bear trap—a temporary pullback that was aggressively bought, leading to further price rallies. The trend remained intact as the stock surged higher throughout the year.
2. KFINTECH: 217% Gain in 2024
KFINTECH was another major winner in 2024, with a gain of 217%. Let’s take a closer look at its setup:
Similar to GVT&D, KFINTECH started 2024 with a triangle breakout above the MA Channel. This breakout signalled a bullish trend, and as the year progressed, the stock continued to rally. Every bullish breakout on the P&F chart aligned perfectly with the stock’s rallies.
The beauty of technical analysis is that history repeats itself. Just like at the beginning of the year, the last quarter of 2024 also saw a triangle breakout. When the stock broke out of this pattern, it continued its upward trajectory. The P&F chart helped confirm that the trend was intact, and the rest, as they say, is history.
3. Motilal Oswal Financial Services: 206% Gain in 2024
Motilal Oswal Financial Services finished 2024 with a 206% gain. Let’s see how you could have identified this trend:
The year began with a bullish breakout above the MA Channel, which set the stage for a strong upward movement. The stock maintained its bullish trend, and even when it tested the MA Channel, it bounced back and continued its rally. This was a clear sign that the trend was still intact and would likely persist.
The Triple Top Pattern that formed on the P&F chart served as a confirmation of the ongoing rally. A triple top indicates strong resistance, but the breakout above it showed that the bulls were in control. By the end of the year, the trend had clearly stayed strong, confirming that the “Trend is Friend.”
By now, you have seen how powerful the Moving Average Channel and Point-and-Figure chart can be in identifying trends and breakouts. These tools can help you stay on the right side of the market, and here’s how you can use them to spot potential winners in 2025.
Here is the list of stocks that broke out of the Triangle pattern above the Moving Average Channel at the start of 2025.
Are you ready to keep a track and trade these stocks in 2025?
Happy trading, and may your charts be filled with profits in the year ahead!
