Apollo Tyres forms Morning Doji Star pattern

The stock of Apollo Tyres Limited has formed a Morning Doji Star candlestick pattern on the daily timeframe. The morning Doji Star is a reversal candlestick pattern, which is bullish and appears at the end of a downtrend. It is a complex pattern made of three candles, with the first candle being bearish, the second one being indecisive, and the third one being bullish.

The buying volumes are higher than the last four days’ fall, which indicates that it is accumulated by smart investors at a lower level. Among the momentum indicators, the 14-period RSI is currently quoting at 41.59 levels and it has given a positive crossover, suggesting a positive breath in the stock. The stochastic oscillator is also indicating some bullish strength as %K is above the %D.

Additionally, The Ichimoku chart on the 30-minute timeframe is giving a positive view as it closed above the KS and TS lines. Another important aspect is that the stock has managed to close above the Ichimoku cloud on the 30-minute timeframe as well, which is also a bullish sign.

Going ahead, the zone of Rs. 171.70-173.70 is likely to act as an immediate hurdle for the stock since it is the confluence of the short-term 13-day EMA and 20-day EMA. While on the downside, Thursday’s low (Doji candles low) of Rs. 161.90 will be the major support for the stock.

On Friday, the stock of Apollo Tyres closed at Rs. 167.95 per share, reporting an increase of 3.29 per cent. The stock opened at Rs. 165 per share and hit an intraday high of Rs. 169.50 and a low of Rs. 164.35 per share on BSE.