Balrampur Chini gives symmetrical triangle breakout on weekly scale

Considering the weekly time frame, after registering high of Rs 119.60 as on weekend November 16, 2018, stock entered into the contracting consolidation and formed a symmetrical triangle. Last week, the stock had managed to give symmetrical triangle breakout along with relatively higher volume. Additionally, the stock had formed bullish candle on breakout week, which adds strength into the breakout.

The 14-period RSI on weekly chart is currently quoting at 72.20 and it is trading above its 9-day average. The fast stochastic line is trading above its slow stochastic line, which depicts positive momentum.

Considering the daily time frame, the zone of Rs. 123-Rs. 125 is likely to act as immediate hurdle for stock, a follow-through move above this level would lead to an extension of the pull-back toward Rs. 133, followed by Rs. 142. While on the downside, the 20-day exponential moving average is likely to as short-term support, which is currently placed at Rs. 111.10 per share.

On Tuesday, the stock of Balrampur Chini Mills  closed at Rs. 124.90 per share, surged by 4.26 per cent. The stock opened at Rs. 119.70 per share and hit an intraday high of Rs. 126.60 and a low of Rs. 119.70 per share on BSE.