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ITC gives symmetrical triangle breakout

Vinayak Gangule
/ Categories: Mindshare
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ITC gives symmetrical triangle breakout

The stock of ITC Limited has given a symmetrical triangle breakout on the daily timeframe. With this triangle breakout, the volumes are consistently registering above the 50-day average for the past five trading sessions. This shows accumulation before the actual breakout. Additionally, the stock formed a bullish candle with a long lower shadow on the breakout day, which adds further strength to the breakout.  

Interestingly, on December 18, 2020, the stock had witnessed a ‘golden crossover’, which is considered a long-term bullish sign. In technical parlance, the golden crossover occurs when a short-term 50-day simple moving average crosses above the long-term 200-day simple moving average on any indices or stocks.  

Talking about the indicators, the 14-period daily RSI is currently quoting at 65.31 and it is trading above its 9-day average. Further, the RSI is in a rising mode on both the daily and the weekly timeframe, which is a bullish sign. Moreover, on the daily timeframe, the ADX is 14.16 and it suggests that the trend is yet to be developed. The directional indicators continue in the ‘buy’ mode as +DI is much above the –DI.  

Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to be with a bullish bias. On the downside, an important support for the stock is placed in the zone of Rs 211-Rs 209 while on the upside, immediate resistance is seen in the zone of Rs 220-Rs 222 as the 50 per cent retracement level of its prior downward move (Rs 310-Rs 134.60) is placed in this region.  

On Friday, the stock of ITC Ltd surged by 1.73 per cent and closed at Rs 217.85 per share. The stock opened at Rs 214.90 per share and hit an intraday high of Rs 218.50 and a low of Rs 211.20 per share on NSE. 

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1 comments on article "ITC gives symmetrical triangle breakout"

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Omprakash Hundia

Pls give quarter three results date

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