ACC forms three inside up candlestick pattern

The stock of ACC Limited has formed Three Inside Up candlestick pattern on the daily scale. The Three Inside Up pattern is indicating the confirmation of the Bullish Harami Pattern, which shows the success of the forecast. 

In this pattern, the first one is a long bearish candle, which closes near its low. The second one is a small bullish candle, which gaps up from the first candle and closes inside the body of the first candle, thus, creating a Harami pattern. The third candle exceeds the high of the first two candles.

Along with this bullish formation, the stock has managed to close above its short-term moving average, i.e. 8-day EMA. From a momentum oscillator perspective, the 14-period daily RSI is currently quoting at 44.72, and it has recently given positive crossover. The daily RSI took support at 32-30 level historically many times, and this time also, it bounced exactly from the same level. The daily and weekly stochastic oscillator is also suggesting some bullish momentum as ‘per cent K’ is above ‘per cent D’. Moreover, there has been a positive divergence between the weekly RSI, weekly stochastic and the stock price movement, suggesting limited downside.

Going ahead, the zone of Rs 1,480-Rs 1,500 is crucial resistance for the stock as 20-day EMA and 50-day EMA is placed in that region. On the downside, Wednesday's low of Rs 1,401.15 is likely to act as crucial support for the stock.

On Friday, the stock of ACC closed at Rs 1,465.15 per share, surging by 2.33 per cent. The stock opened at Rs 1,437 per share and hit an intraday high of Rs 1,467.20 and a low of Rs 1,431.90 per share on BSE.