City Union Bank gives trendline breakout
The stock of City Union Bank Limited has given a downward sloping trendline breakout on Friday formed by connecting swing highs from August 31, 2018. The breakout was supported by justifiable volumes. Additionally, the stock formed a sizeable bullish candle on breakout day, which adds strength to the breakout.
The stock is trading above the weekly pivot and above the short and long-term moving averages. The 14-period RSI on the weekly chart is quoting at 64, which suggests a good momentum going forward. On the weekly chart, the fast stochastic is also trading above its slow stochastic line. The daily ADX and +DI is much above the -DI, which indicates positive strength in the stock.
However, in the near-term, the zone of Rs. 190- Rs. 195 is likely to act as a major support as-short term 20-day EMA and the downward sloping trendline is placed in that region. While on the upside, above Friday's high of Rs. 201.10 level, the stock is likely to extend its northward journey.
On Friday, the stock of City Union Bank Ltd closed at Rs. 200.75 per share, surging up by 4.50 per cent. The stock opened at Rs. 193.45 per share and hit an intraday high of Rs. 201.70 and a low of Rs. 192.40 per share on BSE.