Just Dial forms bullish engulfing candle
On Friday, the stock of Just Dial Limited recorded its highest spread, i.e. the difference between high-low since March 27, 2020. The spread of the day was a whopping 43.55 points, which was over 2.5 times of the 10-day average. This led to the formation of a sizeable bullish bar, which is known as a bullish engulfing pattern in technical parlance. The bullish engulfing candlestick pattern is considered to be a bullish reversal pattern and usually occurs at the bottom of a downtrend.
With this bullish formation, the stock has also managed to close above its short-term moving averages, i.e. 8-day EMA and 13-day EMA. Additionally, the daily RSI and stochastic has given a positive crossover, signalling an early indication of trend revival and supporting the overall bullish price structure. Further, the +DI has turned upside and moved above the ADX.
Going ahead, if the stock sustains above Friday’s session high of Rs 375.85 and trades convincingly above this level, then there is a high probability that Friday’s lowest point of Rs 332.30 would become a temporary bottom for the stock.
On Friday, the stock of Just Dial closed at Rs 371.05 per share, up by 7.99 per cent. The stock opened at Rs 340.15 per share and hit an intraday high of Rs 375.85 and a low of Rs 332.30 per share on NSE.