J K Cement gives downward channel breakout

Considering the weekly timeframe, the stock of J K Cement Limited formed a reversal bullish pin bar candlestick pattern near the upward sloping trendline support and thereafter, witnessed a pullback rally. After registering a high of Rs 1,178 as on April 20, 2020, the stock was trading in downward sloping channel. However, on Tuesday, the stock has given a downward sloping channel breakout along with strong volume. Additionally, the stock formed a sizeable bullish candle on the breakout day, which adds strength to the breakout.

The stock, after a span of over two months, has managed to successfully close above its crucial long-term moving average i.e. 100-day EMA. The leading indicator, 14-period daily RSI, is currently quoting at 61.24 and it is in a rising trajectory. The fast stochastic is also trading above its slow stochastic line. Moreover, the momentum indicator MACD line has crossed above the signal line, which resulted in the histogram turning positive.

Going ahead, the stock has a strong support in the zone of Rs 1,115-1,110 while, on the higher side, a major resistance is placed in the zone of Rs 1,233-1,240 levels.

On Tuesday, the stock of J K Cement closed at Rs 1,172 per share, surged by 5.47 per cent. The stock opened at Rs 1,124.95 per share and hit an intraday high of Rs 1,177.45 and a low of Rs 1,102 per share on BSE.