Technical Bits: Thermax gives trendline breakout

The stock of Thermax Limited has given downward sloping trendline breakout formed by connecting swing highs from January 2018. This breakout was confirmed by the above 50-week average volumes. Additionally, the stock had formed opening bullish Marubozu like a candle on breakout day, which adds strength to the breakout.

The major trend of the stock is positive as it is trading above its weekly pivot and short and long-term moving averages. The leading indicator 14-period RSI is currently quoting at 75.53 and it is in the super bullish zone. The daily MACD stays bullish as it is trading above its zero line and signal line. The histogram is suggesting that the momentum is picking up. The fast stochastic is also trading above its slow stochastic line. Moreover, the other volume-based indicators like OBV and Money Flow index are also very strong.

Going ahead, the stock has strong support in the zone of Rs. 1,030-Rs. 1,020, while on the higher side, the major resistance is placed in the zone of Rs. 1,190-Rs. 1,200 level.

On Tuesday, the stock of Thermax closed at Rs. 1,138.90 per share, surged by 6.80 per cent. The stock opened at Rs. 1066.45 per share and hit an intraday high of Rs. 1,138.90 and a low of Rs. 1,066.45 per share on BSE.