Bayer CropScience gives trendline breakout

Considering the daily timeframe, the stock of Bayer CropScience has given a downward sloping trendline breakout, formed by connecting swing highs from August 2020. Further, this breakout is confirmed by the above 50-day average volume.

The major trend of the stock is bullish as it is trading above its weekly pivot and above its long and 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 daily RSI is currently quoting at 63.33 and it is in a rising trajectory. An interesting observation has been witnessed on the weekly RSI. In the recent sideways move, the RSI never breached its 60 mark, which indicates that the stock is in a super bullish range as per the RSI range shift rules. Recently, the momentum indicator MACD line has crossed above the signal line, which resulted in the histogram turning positive.

In the near-term, the zone of Rs 5,960-Rs 5,835 is likely to act as major support as it is a confluence of the 20-day EMA and the 50-day EMA. While on the upside, the zone of Rs 7,000-Rs 7,100 would be seen as the next resistance zone for the stock.

On Friday, the stock of Bayer CropScience closed at Rs 6,352.20 per share, surged by 6.84 per cent. The stock opened at Rs 5,950 per share and hit an intraday high of Rs 6,538.55 and a low of Rs 5,880.10 per share on NSE.