Biocon forms Bullish Engulfing pattern

The stock of biotech company Biocon Limited formed an outside bar resembling a Bullish Engulfing pattern on the weekly time frame, which indicates bulls were in dominant position. After six weeks of contracting consolidation, Biocon has recently given a breakout along with decent volumes.

The 14-period RSI on a weekly timeframe has recently given a positive crossover. There is a positive divergence developing on Stochastic on a weekly scale, which predicts further upside momentum. Daily MACD stays bullish as it trades above its signal line. The stock is trading above its crucial short-term moving average, i.e. 21-day exponential moving average and it is in rising mode, which is positive for the stock.

For any immediate decline Rs. 620-Rs. 625 per share is likely to act as a short-term support while on the upside stock is likely to touch Rs. 680, followed by Rs. 710 per share.