AUBANK gives downward sloping trendline breakout

The stock of AU Small Finance Bank Limited has given a downward sloping trendline breakout on the daily timeframe, formed by connecting swing highs from August 2018. This breakout is supported by strong volumes.

The major trend of the stock is bullish as it is trading above its weekly pivot and long-short-term moving averages, that is, 20-day, 50-day, 100-day, and 200-day EMAs. These moving averages are exactly in an ascending order, suggesting a strong trend. From the momentum indicators perspective, the 14-period daily RSI is quoting at 66.99 and is displaying a rising trajectory, which suggests a bullish bias. The daily stochastic oscillator is also suggesting some bullish strength as the %K is above the %D.

Going ahead, the stock has immediate support in the zone of Rs. 656-650, as it is a confluence of 200-day EMA and recent swing low, while the major support is placed in the zone of Rs. 635-630, with upward sloping trendline being placed in that region. On the higher side, any sustainable move above the level of Rs. 720 is likely to open up gates for further rally towards the levels of Rs. 760, followed by Rs. 800.

On Monday, the stock of AU Small Finance Bank closed at Rs. 717.45 per share, surging 4.14 per cent against previous close. The stock opened at Rs. 699 per share and hit an intraday high of Rs. 720.40 and a low of Rs. 685 per share on BSE.