DLF gives trendline breakout
Considering the daily timeframe, the stock of DLF Limited has given a downward sloping trendline breakout, formed by connecting swing highs from March 2020. The breakout was supported by robust volumes. Additionally, the stock had formed a bullish opening Marubozu candle on the breakout day, which indicates extreme bullishness.
The stock has managed to successfully close above its crucial short-term moving average i.e. 50-day EMA, after a span of over three months. The leading indicator, 14-period daily RSI, is currently quoting at 60.34 and it is trading above its nine-day average. The daily MACD stays bullish as it is trading above its zero line and signal line. Moreover, the surge in +DI is suggesting that the trend will strengthen further.
Going ahead, we expect the bias to remain positive as long as the stock sustains above Friday’s low of Rs 140 level. On the higher side, the level of Rs 159, followed by Rs 172.60, would be seen as the next resistance zone for the stock.
On Friday, the stock of DLF closed at Rs 150.65 per share, surged by 4.58 per cent. The stock opened at Rs 140 per share and hit an intraday high of Rs 152.85 and a low of Rs 140 per share on NSE.