Glenmark Pharmaceuticals gives trendline breakout

The stock of Glenmark Pharmaceuticals has given a horizontal trendline breakout, formed by connecting swing highs since September 2020.

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 28.86 lakh, while on Monday, the stock witnessed a total volume of 101.32 lakh.

Along with this trendline breakout, the stock has also managed to close above the upper Bollinger band and started band walk, which is a very bullish sign. Currently, the stock is trading above its short and long-term moving averages.

Interestingly, the daily RSI has also given a downward sloping channel breakout. Currently, the daily RSI is quoting at 72.19 and it is in a rising mode. The daily MACD line just crossed the signal line, and the histogram became green. Moreover, on the daily timeframe, ADX is 12.21, which suggests that the trend is yet to be developed. Directional indicators continued in the ‘buy’ mode as +DI is much above the –DI.

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 in the zone of Rs 502-Rs 495, and on the upside, immediate resistance is seen in the zone of Rs 550-Rs 573.

On Monday, the stock of Glenmark Pharmaceuticals surged by 5.73 per cent and closed at Rs 532.10 per share. The stock opened at Rs 505.75 per share and hit an intraday high of Rs 541.55 and a low of Rs 502 per share on NSE.