BERGEPAINT gives symmetrical triangle breakout

The stock of Berger Paints India Limited has given a symmetrical triangle breakout on the daily timeframe along with relatively higher 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.

All the moving averages are trending upside and they are in sequence. The stock is meeting Daryl Guppy’s multiple moving averages set up rules as it is trading above both the short and long term moving averages. The leading indicator, 14- period daily RSI, is currently quoting at 65.34 and is in the rising trajectory, which suggests a bullish bias. Moreover, the stochastic oscillator is also suggesting some bullish strength, as %K is above the %D.

Going ahead, we expect the bias to remain positive as long as the stock sustains above its 20-day exponential moving average, which is currently quoting at the level of Rs 507.70. On the higher side, the level of Rs 550, followed by Rs 580, would be seen as the next resistance zone for the stock.

On Tuesday, the stock of Berger Paints India closed at Rs 530.15 per share, surged by 4.17 per cent. The stock opened at Rs 509.65 per share and hit an intraday high of Rs 534.45 and a low of Rs 509.60 per share on the BSE.