Apollo Tyres gives trendline breakout
Considering the daily timeframe, the stock of Apollo Tyres Limited has given a horizontal trendline breakout formed by connecting swings highs from August 2020. The stock has formed a sizeable bullish candle on the breakout day, which adds strength to the breakout.
Further, this breakout is supported by a strong volume of more than double of 50-day average volume, which indicates a strong buying interest by the market participants. The major trend of the stock is bullish as it is trading above its short and long-term moving averages, i.e. 20-day EMA, 50-day EMA, 100-day EMA and 200-day EMA.
Among the momentum indicators, the 14-period daily RSI is currently quoting at 63.77 and it is in a rising trajectory. Interestingly, the RSI is on the verge of giving a downward sloping trendline breakout. The stochastic oscillator is also suggesting a bullish strength as per cent K is trading above the per cent D. Moreover, the Commodity Channel Index (CCI) and Martin Pring’s KST indicator has also given a bullish crossover.
Going ahead, the stock has immediate support in the zone of Rs 132-Rs 130 as the short-term 13-day EMA and 20-day EMA is placed in that region. Moreover, major support is placed in the zone of Rs 127-Rs 126 as it is the confluence of 50-day EMA level and the upward sloping trendline support.
On Wednesday, the stock of Apollo Tyres surged by 6.80 per cent and closed at Rs 140.65 per share. The stock opened at Rs 132.45 per share and hit an intraday high of Rs 143.35 and a low of Rs 132.15 per share on NSE.