Astrazeneca Pharma bounces from trendline support
Considering the weekly time frame, the stock of Astrazeneca Pharma India Limited bounced back from the edge of a rising trendline support that is formed by connecting the swing lows since December 2018, which coincides with long-term moving average, i.e. 100-week SMA level. The reversal from the support is further justified with relatively higher volumes.
Currently, the stock is trading above its short and long-term moving averages, i.e. 50-week EMA, 100-week EMA and 200-week EMA. Among the momentum indicators, the 14-period weekly RSI took support at 40 level, historically many times and this time also, it bounced exactly from the same level.
The weekly stochastic has also given a positive crossover. Moreover, the daily MACD stays bullish as it is trading above its zero line and the histogram is suggesting that an upside momentum is picking up.
Going ahead, the zone of Rs 2,328-Rs 2,240 is likely to act as an immediate support while, a major support is placed in the zone of Rs 1,970-Rs 1,885 as it is the confluence of 100-week SMA and the upward sloping trendline support. On the higher side, the level of Rs 2,550, followed by Rs 2,730, would be seen as the next resistance zone for the stock.