Century Textiles to break downward sloping trendline resistance
The stock's pullback rally, which began from the lower levels, faced resistance near its downward sloping trendline resistance. The stock is consolidating near its trendline resistance zone for the last three weeks and it is likely to break in the coming days.
The 14-period day RSI of Century Textiles is quoting around 62.83 and it has given a positive crossover above 60 mark, which predicts further upside momentum. The weekly MACD histogram first time crossed the zero line after three weeks. The stock is still trading below its long-term moving averages, i.e. 200-day exponential moving average. Also, during the last three weeks, it has shown a relatively low volume trade.
For the short-term, Rs. 970-Rs 990 will act as a minor resistance zone, while above this level new technicals will start unfolding. The stock has been trading above its crucial short-term moving average, i.e. 20-day exponential moving average and it is in a rising mode, which is a positive for the stock.