CHOLAFIN forms Three Outside Up pattern

The stock of Cholamandalam Investment and Finance Company Ltd. (CHOLAFIN) has formed Three Outside Up candlestick pattern on the daily time frame. Three Outside Up pattern is representing the confirmation of the Bullish Engulfing pattern, can only show the success of the forecast of the appropriate Engulfing pattern.

On Monday, the stock has managed to close above its weekly pivot and short-long term moving averages, i.e. 20-day EMA, 50-day EMA, 100-day EMA and 200-day EMA. From the momentum indicators perspective, the 14-period RSI on the daily chart is currently quoting at 55.76 and it is in the rising trajectory, which suggests bullish bias. The daily stochastic oscillator is also suggesting some bullish strength as %K is above the %D. Moreover, the Ichimoku chart on 60-minute time frame is clearly giving a positive view as it closed above the KS, TS lines and Ichimoku cloud.

Going ahead, the stock has strong support in the zone of Rs. 267-270, while on the higher side, the major resistance is placed in the zone of Rs. 286-287 level.

On Monday, the stock of CHOLAFIN closed at Rs. 273.65 per share, up by 4.89 per cent. The stock had opened at Rs. 264.90 per share and hit an intraday high of Rs. 278.55 and a low of Rs. 262.45 per share on BSE.