Morepen Lab has broken out of the downslope resistance line. The scrip has moved up after hitting a bottom of Rs 154. On Thursday, it closed at Rs 164. The scrip has a strong possibility of moving up to Rs 190 quickly.

On the weekly charts, it has been forming a curved saucer pattern. In common man's language, the price has fallen in absolutely measured tones. That can happen only if the price is repeatedly supported as it falls. What this means is that investors have been continuously picking it up and accumulating it. Once the floating stock is absorbed, the stock would make a quick and bold thrust northwards.

On the daily charts, volumes have moved up sharply. The scrip has very limited risk downside and good potential upside. Keep your stop loss at Rs 154.