CAPF forms sizeable bullish candle above resistance

CAPF has recently given downward sloping trendline resistance breakout and formed sizable bullish candle above trendline resistance, on the weekly scale. The breakout was supported by justifiable volumes. The stock is likely to touch levels of Rs. 670, followed by Rs. 720 in the coming weeks.

The Daily RSI suggests buying in the stock. According to MACD analysis, on the daily time frame, there is a centreline bullish crossover, which is a positive signal. The stock is trading above its crucial short-term moving average, i.e., 21-day EMA and it is in rising mode.

For any immediate decline, stock’s crucial long-term moving average, i.e., 200-day exponential moving average is likely to act as strong support which is currently placed around Rs. 565, failure to hold this support would lead to further correction up to the level of Rs. 535. On the upside, the stock is likely to touch Rs. 670 level, followed by Rs. 720.