Avenue Supermarts gives symmetrical triangle breakout
The stock of Avenue Supermarts Limited has given a symmetrical triangle breakout on the weekly timeframe. This breakout was confirmed by the above 50-week average volume. Additionally, the stock formed a sizeable bullish candle on the breakout week, which adds further strength to the breakout.
The major trend of the stock is bullish as it is trading above its weekly pivot as well as above its short and long-term moving averages, i.e. 20-week, 50-week & 100-week EMAs, and these moving averages are exactly in an ascending order, which suggests that the trend is strong.
The stock's relative strength index (RSI) has reached its highest value in the last 14 weeks, which is bullish. It has also managed to close above the 60 mark after a span of almost seven months. The daily MACD is above the zero line and signal line. The MACD histogram suggests bullish momentum. And most importantly, the MACD line has crossed the prior swing highs.
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 at the level of Rs 2,470 while on the upside, immediate resistance is seen at Rs 2,850.
On Friday, the stock of Avenue Supermarts Ltd surged by 2.40 per cent and closed at Rs 2,685.10 per share. The stock opened at Rs 2,647 per share and hit an intraday high of Rs 2,715 and a low of Rs 2,632 per share on NSE.