Dabur bounces from upward sloping trendline support

Considering the weekly time frame, the stock of Dabur India Limited has bounced back from the edge of the rising trendline support that is formed by connecting swing lows from March 2018. The reversal from the support is confirmed by the above 50-week average volume. 

Among the momentum indicators, the 14-period daily RSI is currently quoting at 38.88. It is trading above its nine-day average and it is in the rising trajectory, which suggests bullish bias. The daily stochastic oscillator is also suggesting some bullish strength as per cent K is above the per cent D. Moreover, the positive divergence is clearly visible between daily stochastic and stock price movement, which suggests limited downside.

Ichimoku chart on 30-minute time frame is clearly giving a positive view as it closed above Ichimoku cloud, KS and TS lines. Moreover, on a daily scale, the know sure thing (KST) has also given a bullish crossover.

Going ahead, the stock has a strong support in the zone of Rs 400-390 while, on the higher side, the major resistance is placed in the zone of Rs 452-455 level.

On Friday, the stock of Dabur India closed at Rs 445 per share, surged by 6.07 per cent. The stock opened at Rs 419.55 per share and hit an intraday high of Rs 452.40 and a low of Rs 415.25 per share on BSE.