Siemens gives symmetrical triangle breakout
The stock of Siemens Limited has given a symmetrical triangle breakout on the daily timeframe. This breakout was confirmed by the above 50-day average volume. Additionally, the stock formed a sizeable bullish candle on the breakout day, which adds strength to the breakout.
Currently, the stock is trading above its short-term moving averages, i.e. 20-day EMA and 50-day EMA. The stock's relative strength index (RSI) has reached its highest value in the last 14-days, which is bullish. It has also managed to close above the 60 mark after a span of almost five months. The daily stochastic oscillator is suggesting some bullish strength as well since per cent K is above the per cent D.
Further, the Ichimoku chart on the daily timeframe is clearly giving a positive view as it closed above KS lines, TS lines and Ichimoku Cloud. Another important aspect is that the KS line crossed above the TS line, which is also a bullish sign.
Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to be with a bullish bias. On the downside, important support for the stock is placed at the level of Rs 1,080 and on the upside; an immediate resistance is seen at Rs 1,170, followed by Rs 1,253.
On Friday, the stock of Siemens Ltd closed at Rs 1,149.20 per share, surged by 4.99 per cent. The stock opened at Rs 1,102 per share and hit an intraday high of Rs 1,153.70 and a low of Rs 1,096.40 per share on NSE.