Coromandel International gives ascending triangle breakout

The stock of Coromandel International has given an ascending triangle breakout on the daily timeframe. Further, the breakout is supported by a robust volume of more than 3 times of the 50-day average volume, indicating a strong buying interest by the market participants. The 50-day average volume was 4.46 lakh, while on Monday, the stock witnessed a total volume of 15.86 lakh.   

With this triangle breakout, the stock has also managed to close above the upper Bollinger band and started the band walk, which is a very bullish sign.  

Currently, the stock is trading above its short and long-term moving averages. The stock's relative strength index (RSI) has reached its highest value in the last 14-days, which is bullish. Also, it has managed to close above its prior swing high, which is a bullish sign. The weekly and the daily stochastic oscillator are also suggesting a bullish strength as per cent K is above the per cent D. 

Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to be with a bullish bias. On the downside, important support for the stock is placed at the zone of Rs 800-Rs 790 while on the upside, immediate resistance is seen at Rs 930.  

On Monday, the stock of Coromandel International closed at Rs 849.80 per share, surged by 5.95 per cent. The stock opened at Rs 809 per share and hit an intraday high of Rs 864.85 and a low of Rs 799.45 per share on NSE.