Igarashi Motors India gives trendline breakout
The stock of Igarashi Motors India Limited has given downward sloping trendline breakout on the daily time frame formed by connecting swing highs from June 2020. Further, the stock had formed a sizeable bullish candle in the breakout day, which adds strength to the breakout.
This breakout is supported by a robust volume of more than 19 times of 50-day average volume, indicating a strong buying interest by the market participants. The 50-day average volume was 0.73 lakh, while today, the stock has witnessed the total volume of 14.11 lakh.
Talking about the moving averages, the stock is trading above its short and long-term moving averages and is in an ascending order, which suggests that the stock is in strong uptrend.
Interestingly, the stock's Relative Strength Index (RSI) has managed to close above 60 mark on weekly timeframe, for the first time since February 2020. The daily MACD is above the zero line and signal line. The MACD histogram suggests a bullish momentum. And most importantly, the MACD line crossed the prior swing highs.
The other volume-based indicators like OBV and Money Flow index are also very strong. Moreover, the daily ADX is very strong at 27.85. The -DI is much below the +DI and ADX is above the -DI. This shows the strong momentum in the stock.
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 in the zone of Rs 312-Rs 305, and on the upside, immediate resistance is seen in the zone of Rs 362-Rs 368.
On Friday, the stock of Igarashi Motors India surged by 12.36 per cent and closed at Rs 340.55 per share. The stock opened at Rs 305.80 per share and hit an intraday high of Rs 356 and a low of Rs 305.55 per share on NSE.