Adani Power gives Ascending Triangle pattern breakout

The stock of Adani Power Limited has given ascending triangle breakout on a daily time frame. This breakout was confirmed by the above 50-day average volumes. The ascending triangle is a bullish formation that usually forms during an uptrend as a continuation pattern.

Additionally, the stock had formed an opening bullish Marubozu candle on the breakout day, which added strength to the breakout. The opening bullish Marubozu candle has no shadow extending from the open price end of the body. The opening bullish Marubozu candle indicates extreme bullishness.

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 and these moving averages are exactly in an ascending order, which suggests that the trend is strong. Among the momentum indicators, the 14-period daily RSI is currently quoting at 73.76 and it has recently given downward sloping trendline breakout. The MACD stays bullish as it is trading above its zero line and signal line. The histogram is suggesting that the momentum is picking up. Moreover, the daily ADX which shows the strength of the trend, turned upside and moved above the -DI.

In the near-term, the zone of Rs. 66-Rs.64 is likely to act as a major support as short-term moving averages, i.e. 8-day EMA and 13-day EMA are placed in that region. While on the upside, above Monday’s high of Rs. 73.80 level, the stock is likely to extend its northward journey.

On Monday, the stock of Adani Power closed at Rs. 71.55 per share, surging by 5.38 per cent. The stock opened at Rs. 68.15 per share and hit an intraday high of Rs. 73.80 and a low of Rs. 68.15 per share on NSE.