FSL gives trendline breakout

The stock of Firstsource Solutions has given downward sloping trendline breakout on Tuesday formed by connecting swing highs from December 4, 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-term moving averages. The 14-period RSI on the daily chart is quoting at 64.12, which suggests a good momentum going forward. The fast stochastic line is also trading above its slow stochastic line. The other volume-based indicators like OBV and Money Flow index are also very strong. Additionally, the trend strength is absolutely extremely high as the ADX is above 27 and -DI is much below the +DI and ADX. This shows the technical strength in the stock.

 In the near term, the 100-day exponential moving average, which is placed around 49.35, is likely to act as immediate support, while the zone of Rs 47.50-Rs 46.90 is likely act as major support as short-term 20-day EMA and 50-day EMA is placed in that region. While on the upside, 200-day EMA is likely to act as short-term resistance, which is currently placed at Rs 52.55.

 On Tuesday, the stock of Firstsource Solutions Ltd closed at Rs. 51.30 per share, surged by 5.66 per cent. The stock opened at Rs. 49.40 per share and hit an intraday high of Rs. 51.85 and a low of Rs. 48.90 per share on BSE.