Technical Bits: Trent Limited gives ascending triangle breakout
The stock of Trent Limited has given a breakout of ascending triangle pattern on the weekly scale along with strong volumes. Additionally, the stock had formed sizeable bullish candle on breakout week, which adds strength to the breakout. The ascending triangle is a bullish formation that usually forms during an uptrend as a continuation pattern.
The stock is trading near the all-time high and above all the crucial short and long-term moving averages i.e. 20, 50, 100 & 200-Week SMA. The trend strength is extremely high as the ADX is above 30 and -DI is much below the +DI and ADX. The 14-period RSI on the weekly chart is in the rising trajectory, which suggests bullish bias. Moreover, on the weekly scale, the fast stochastic is also trading above its slow stochastic line.
However, in the near-term, the zone of Rs. 345- Rs. 335 is likely to act as major support as short-term moving averages, i.e. 20-week EMA and 50-week EMA is placed in that region. While on the upside, above Friday's high of Rs. 399.95 level, the stock is likely to extend its northward journey.
On Friday, the stock of Trent closed at Rs. 397 per share, surged by 5.47 per cent. The stock opened at Rs. 379 per share and hit an intraday high of Rs. 399.95 and a low of Rs. 365.10 per share on NSE.