Multi Commodity Exchange of India gives trendline breakout

The stock of Multi Commodity Exchange of India Ltd (MCX) has given a downward sloping trendline breakout, formed by connecting swing highs from February 2020.

The breakout was supported by above 50-day average volumes. Additionally, the stock had formed an opening bullish Marubozu candle on the breakout day, which indicates an extreme bullishness.

As the stock is near its 52-week high, it is trading above all the short and long-term moving averages. The stock is meeting the criteria of Mark Minervini’s trend template. The current stock price is above both 150-day (30-weeks) and 200-day (40-weeks) moving average price lines. Moreover, 30 and 40-weekly averages are trending up and at the same time, they are in the desired sequence. Also, the current stock price is nearly 77 per cent above its 52-week low and the current price is closer to the 52-week high.

The leading indicator, RSI, is in a rising trajectory on both the weekly and the daily timeframe. Recently, the weekly RSI is has given a downward sloping trendline breakout, which is also a bullish sign. The daily and weekly MACD stays bullish as it is trading above its zero line and signal line. Further, the ADX is very strong at 35.13. The -DI is much below the +DI and ADX is above the -DI and +DI. This shows a technical strength in the stock. 

Going ahead, we expect the bias to remain positive as long as the stock sustains above Monday’s low of Rs 1,355 level. On the higher side, the level of Rs 1,500, followed by Rs 1,565, would be seen as the next resistance zone for the stock.

On Monday, the stock of Multi Commodity Exchange of India closed at Rs 1,440.85 per share, surged by 7.12 per cent. The stock opened at Rs 1,355 per share and hit an intraday high of Rs 1,457 and a low of Rs 1,355 per share on NSE.