Avenue Supermarts gives Ascending Triangle pattern breakout

The stock of Avenue Supermarts Limited has given ascending triangle breakout on a weekly time frame. This breakout was confirmed by the above 50-week average volumes. Additionally, the stock formed a sizeable bullish candle on the breakout week, which adds strength to the breakout.

The ascending triangle is a bullish formation that usually forms during an uptrend as a continuation pattern.

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. The 14-period RSI on the weekly chart is currently quoting at 70.46 and it is in the rising trajectory, which suggests bullish bias. The weekly MACD is above the zero line and signal line. The histogram is suggesting that the upward momentum is picking up. The other volume-based indicators like OBV and Money Flow index are also very strong. Moreover, the daily ADX is very strong at 31.82. The -DI is much below the +DI. This shows the technical strength in the stock.

In the near-term, the zone of Rs. 1630-Rs.1600 is likely to act as major support, with short-term moving averages, i.e. 13-day EMA and 20-day EMA placed in that region. While on the upside, above Friday's high of Rs. 1770 level, the stock is likely to extend its northward journey.

On Friday, the stock of Avenue Supermarts closed at Rs. 1758.35 per share, surged by 8.58 per cent. The stock opened at Rs. 1633 per share and hit an intraday high of Rs. 1770 and a low of Rs. 1620 per share on NSE.