Sudarshan Chemical Industries gives trendline breakout
The stock of Sudarshan Chemical Industries Limited has given a downward sloping trendline breakout, formed by connecting swing highs from August 2018. The breakout was supported by robust volumes. Further, 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 trading above all the important 12 short and long-term moving averages. The averages are all trending up, and they are in a sequence. The stock's relative strength index (RSI) has reached its highest value in the last 14-days, which is bullish. Also, the RSI has managed to close above its prior swing high. The daily MACD line just crossed the signal line, and the histogram became green. Moreover, the other volume-based indicators, like OBV and Money Flow index, are also very strong.
Going ahead, we expect the bias to remain positive as long as the stock sustains above its short-term 13-day EMA, which is currently placed at Rs 469 level. On the higher side, the zone of Rs 600- Rs 610 would be seen as the next resistance zone for the stock.
On Friday, the stock of Sudarshan Chemical Industries closed at Rs 523.15 per share, surged by 6.94 per cent. The stock opened at Rs 493 per share and hit an intraday high of Rs 538 and a low of Rs 490.10 per share on NSE.