ACC bounces owing to upward sloping trendline support

Considering the weekly time frame, the stock of ACC limited has bounced back from the edge of the rising trendline support that is formed by connecting the swing lows from July 2018. The reversal from the support is further justified with strong volumes. Additionally, the stock has formed a sizeable bullish candle suggesting bulls are taking control with long term support.

Among the momentum indicators, the 14-period RSI took support at 35 level historically many times and this time also it bounced exactly from the same level. The fast stochastic is also trading above its slow stochastic line. Moreover, a positive divergence was also spotted at the daily time frame on the RSI, which indicates limited downside. A positive divergence occurs when the price is making a lower low, while the RSI forms a higher low.

Going ahead, the stock has a strong support in the zone of Rs. 1500-1510, while on the higher side, the major resistance is placed in the zone of Rs. 1570-1580 level.

On Friday, the stock of ACC Ltd closed at Rs. 1553.10 per share, surged by 1.23 per cent. The stock opened at Rs. 1533.40 per share and hit an intraday high of Rs. 1558 and a low of Rs. 1529.20 per share on BSE.