Berger Paints India gives trendline breakout
The stock of Berger Paints India Limited has given a downward sloping trendline breakout, formed by connecting swing highs from February 2020. The breakout was supported by robust volumes. Additionally, the stock formed a sizeable bullish candle on the breakout day, adding strength to the breakout.
The stock has also managed to close above the upper Bollinger band and started the 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.
The stock's relative strength index (RSI) has reached its highest value in the last 14-days, which is bullish. Also, it has managed to close above its previous swing high. The other volume-based indicators like OBV and Money Flow Index (MFI) are also very strong. Further, on the daily timeframe, ADX is 19.11 and suggests that the trend is yet to be developed. Directional indicators continue in the ‘buy’ mode as +DI continues above –DI.
Going ahead, we expect the bias to remain positive as long as the stock sustains above Friday’s low of Rs 526.85 level. On the higher side, the level of Rs 587, followed by Rs 600, would be seen as the next resistance zone for the stock.
On Friday, the stock of Berger Paints India closed at Rs 555.15 per share, surged by 4.97 per cent. The stock opened at Rs 529.40 per share and hit an intraday high of Rs 558 and a low of Rs 526.85 per share on NSE.