Technical Bits: Dabur gives consolidation breakout

The stock of Dabur India Limited gives consolidation breakout on the daily time frame along with relatively higher volumes. Additionally, the stock formed a sizeable bullish candle on the breakout day, which adds strength to the breakout. With this consolidation breakout, the ADX, which shows the strength of the trend, turned upside and moved above the -DI.

The major trend of the stock is bullish as it is trading above its weekly pivot and above its long-short term moving averages, i.e. 20-day, 50-day, 100-day and 200-day EMAs. The leading indicator RSI is currently quoting at 69.79 and it is in bullish zone. The daily MACD stays bullish as it is trading above its signal line and zero line. The stochastic oscillator is also suggesting some bullish strength as %K is above the %D.

Going ahead, the stock has strong support in the zone of Rs. 404-Rs 403 as 100-day and 200-day EMA is placed in that region, while on the higher side, the major resistance is placed in the zone of Rs. 427-Rs 432 level. A follow-through move above this level would lead to an extension of the pull-back toward Rs. 455, followed by Rs. 465.

On Tuesday, the stock of Dabur India closed at Rs. 424.80 per share, surged by 3.48 per cent. The stock opened at Rs. 408.20 per share and hit an intraday high of Rs. 426.80 and a low of Rs. 407.55 per share on BSE.