Tata Metaliks gives trendline breakout
Considering the daily timeframe, the stock of Tata Metaliks has given a horizontal trendline breakout, formed by connecting swing highs since March 2019. This breakout is confirmed by the above 50-day average volume. Additionally, the stock formed a sizeable bullish candle on the breakout day, adding further strength to the breakout.
The major trend of the stock is bullish as it is trading above its weekly pivot and above the long and short-term moving averages, i.e. 20-day, 50-day, 100-day, and 200-day EMAs. These moving averages are exactly in ascending order, which suggests that the trend is strong.
Interestingly, the 14-period daily RSI has also given a downward sloping trendline breakout, which is a very bullish sign. The daily MACD stays bullish as it is trading above its zero line and signal line. The histogram is suggesting a pickup in the upside momentum. Moreover, the daily ADX is strong at 32.26 levels. The +DI is above the -DI and the ADX shows further strength in the trend.
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 660-Rs 650 while on the upside, immediate resistance is seen in the zone of Rs 750-Rs 760.
On Thursday, the stock of Tata Metaliks surged by 6.09 per cent and closed at Rs 719.40 per share. The stock opened at Rs 684 per share and hit an intraday high of Rs 732 and a low of Rs 668.80 per share on NSE.