Colgate-Palmolive gives trendline breakout
The stock of Colgate-Palmolive (India) Limited has formed a reversal dark cloud cover candlestick pattern as on April 28, 2020 and thereafter, witnessed almost 18 per cent throwback.
The throwback is halted near 61.8 per cent Fibonacci retracement level of its prior upward move (Rs 1,065-Rs 1,565.80). However, on Monday, the stock has given a downward sloping trendline breakout on the daily timeframe, formed by connecting swing highs from May 2020. The breakout was supported by robust volumes. Additionally, the stock formed a sizeable bullish candle on the breakout day, adding strength to the breakout.
The stock is meeting Daryl Guppy’s multiple moving averages set up rules as it is trading above both the short and long-term moving averages. Among the momentum indicators, the 14-period daily RSI is currently quoting at 63.80 and it is in a bullish zone. The daily MACD stays bullish as it is trading above its zero line and signal line.
Going ahead, we expect the bias to remain positive as long as the stock sustains above Monday’s low of Rs 1,395 level. On the higher side, the zone of Rs 1,448- Rs 1,460 would be seen as the next resistance zone for the stock.
On Monday, the stock of Colgate-Palmolive (India) closed at Rs 1,432.15 per share, surged by 2.86 per cent. The stock opened at Rs 1,396 per share and hit an intraday high of Rs 1,436.85 and a low of Rs 1,395 per share on NSE.