Advanced Enzyme Technologies gives trendline breakout

The stock of Advanced Enzyme Technologies Limited has given a downward sloping trendline breakout formed by connecting swing highs from January 2020. The breakout was supported by robust volumes.

Currently, the stock is trading above its 20-day EMA (Rs 154.50), 50-day EMA (Rs 149.7), 100-day EMA (Rs 150.95) and 200-day EMA (Rs 157), which indicates a medium and long-term uptrend. Interestingly, the leading indicator, 14-period daily RSI has given a symmetrical triangle pattern breakout, which is also a bullish sign. The daily RSI is in a super bullish zone. The fast stochastic is also trading above its slow stochastic line. Further, the ADX is very strong at 27.29 level in the daily timeframe. The +DI is much above -DI and ADX shows a strength in the trend.

Going ahead, we expect the bias to remain positive as long as the stock sustains above Tuesday’s low of Rs 158.70 level. On the higher side, the level of Rs 187, followed by Rs 206, would be seen as the next resistance zone for the stock.

On Tuesday, the stock of Advanced Enzyme Technologies closed at Rs 175.30 per share, surged by 9.02 per cent. The stock opened at Rs 162.80 per share and hit an intraday high of Rs 186.90 and a low of Rs 158.70 per share on NSE.