Orissa Minerals Development Company gives symmetrical triangle breakout
The stock of Orissa Minerals Development Company (OMDC) Limited has given a symmetrical triangle breakout on the daily timeframe.
This breakout was confirmed by the above 50-day average volume. With this triangle breakout, the stock has also managed to close above the upper Bollinger band and started band walk, which is a very bullish sign.
The stock is meeting Daryl Guppy’s multiple moving averages set-up rules as it is trading above both the short and long-term moving averages. Interestingly, the leading indicator, 14-period daily RSI has given a downward sloping trendline breakout, which is also a bullish sign. The trend strength indicator ADX is at a healthy level of 24.93. The directional parameter +DI is much above the -DI. 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, an important support for the stock is placed at the zone of Rs 1,610-1,590, and on the upside; an immediate resistance is seen at Rs 1,820.
On Thursday, the stock of Orissa Minerals Development Company Ltd closed at Rs 1,799.55 per share, surged by 9.75 per cent. The stock opened at Rs 1,649 per share and hit an intraday high of Rs 1,803.60 and a low of Rs 1,635 per share on NSE.