Berger Paints gives trendline breakout

The stock of Berger Paints India Limited has given a downward sloping trendline breakout, formed by connecting swing highs from April 2020. This breakout was confirmed by the above 50-day average volumes. 

Currently, the stock is trading above its 20-day EMA (500.10), 50-day EMA (493.35), 100-day EMA (493.35) and 200-day EMA (473.30), which indicates a medium and long-term uptrend. The stock's relative strength index (RSI) has reached its highest value in the last 14-days, which is bullish. The weekly RSI is also in a rising trajectory. The daily stochastic oscillator is also suggesting some bullish strength as per cent K is above per cent D. Moreover, the daily MACD stays bullish as it is trading above its zero line and signal line.

Going ahead, we expect the bias to remain positive as long as the stock sustains above Wednesday’s low of Rs 515.60 level. On the higher side, the level of Rs 587, followed by Rs 600, would be seen as the next resistance zone for the stock.

On Wednesday, the stock of Berger Paints closed at Rs 540.80 per share, surged by 4.91 per cent. The stock opened at Rs 516 per share and hit an intraday high of Rs 552 and a low of Rs 515.60 per share on NSE.