Lal PathLabs breaches multiple resistance

Dr Lal PathLabs gave its prolonged multiple resistance breakout on Friday in the zone of 920-930 levels. Since mid-May, 2017, the stock has been resisting in the said zone and retreating on closing basis. Here, the stock breached its tick average at 923 and also hit 52-week high at 941 which is Friday’s high as of 14:15 hours.

The stock had made a Double bottom at 800 levels on weekly time frame on April 27 and May 18 week, where it had attempted a breakout at 930 levels on May 18 week, but could not sustain on closing basis. Considering the daily time frame, the stock recently surged for third consecutive session on Friday after 14 days consolidation. Three days rally was supported by rising volumes and 14-period RSI positive crossover and downward sloping trendline breakout at 51. The stock also broke above its Bollinger Band and hit Upper BB at 904.

The stock should sustain 930-932 levels on all daily, weekly and monthly closing basis to witness significant upside in future. Going forward, above 930-932 levels, we hold 970-1000 as next immediate resistances, followed by 1065-1125. On the downside, 800 followed by 715 will act as the supports.