After 1-Year Consolidation, NH Near New Highs – What's Next?

The stock was in a 1-year consolidation phase, struggling to break past a strong resistance zone. Throughout this phase, the 200 Exponential Moving Average (EMA) acted as a solid support level, with buying pressure emerging every time the price approached it.

During consolidation, low volume indicated accumulation, and a massive surge in volume was observed as the resistance level was breached, confirming institutional participation. The RSI coming out of range further strengthens the breakout confirmation; however, caution is needed as it is just below the overbought level.

A retest of the breakout zone would offer an ideal entry opportunity, provided there is follow-up buying to sustain momentum.

To manage risk effectively, a strict stop-loss should be placed below the previous resistance, which is now acting as support.

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