TVS Motor gives trendline breakout
The stock of TVS Motor Company Limited has given a horizontal trendline breakout on the daily timeframe formed by connecting swing highs from October 2020.
Further, the breakout is supported by a robust volume of more than double of the 50-day average volume, indicating a strong buying interest by the market participants. The 50-day average volume was 29.09 lakh, while on Friday, the stock had witnessed a total volume of 75.43 lakh.
The major trend of the stock is bullish as it is trading above its weekly pivot as well as above its long and short-term moving averages, i.e. 20-day, 50-day, 100-day & 200-day EMAs, and these moving averages are exactly in an ascending order, which suggests that the trend is strong.
Interestingly, the RSI has also given a neckline breakout of inverted head & shoulders pattern, which is a very bullish sign. The stochastic is also suggesting a bullish momentum as the fast stochastic line is trading below its slow stochastic line. Moreover, the ADX is strong at 28.73 levels. The +DI is above the -DI and ADX shows strength in the trend.
Going ahead, we expect the bias to remain positive as long as the stock sustains above its 20-day EMA level, which is currently quoting at Rs 474.30 level. On the higher side, the zone of Rs 517-Rs 523 would be seen as the next resistance zone for the stock.
On Friday, the stock of TVS Motor Company closed at Rs 499.65 per share, surged by 5.27 per cent. The stock opened at Rs 475.10 per share and hit an intraday high of Rs 504.80 and a low of Rs 475 per share on NSE.