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KNR Constructions gives trendline breakout

Vinayak Gangule
/ Categories: DSIJ Mindshare
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KNR Constructions gives trendline breakout

The stock of KNR Constructions Limited has given a downward sloping trendline breakout on the weekly timeframe, formed by connecting swing highs from December 2017. Further, the breakout is supported by a robust volume of more than double of the 50-week average volume, indicating a strong buying interest by the market participants. The 50-week average volume was 11.66 lakh, while in the current week, the stock had witnessed a total volume of 30.69 lakh.

Additionally, the stock formed a sizeable bullish candle on the breakout week, adding strength to the breakout. Also, it has managed to close above the upper Bollinger band on a weekly chart, which is a very bullish sign.

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-week, 50-week, 100-week & 200-week EMAs, and these moving averages are exactly in an ascending order, which suggests that the trend is strong.

Interestingly, the weekly RSI has also given a horizontal trendline breakout, which is also a bullish sign. The daily ADX is strong at 37.92 levels. The +DI is above the -DI and the ADX shows strength in the trend.

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, important support for the stock is placed in the zone of Rs 285-Rs 282, and on the upside, immediate resistance is seen in the zone of Rs 330-Rs 339.

On Friday, the stock of KNR Constructions surged by 4.11 per cent and closed at Rs 313.95 per share. The stock opened at Rs 304.20 per share and hit an intraday high of Rs 319.85 and a low of Rs 302.15 per share on NSE.

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