Godfrey Phillips form morning doji star pattern

The stock of Godfrey Phillips India Limited has formed a morning doji star candlestick pattern on the daily time frame. The morning doji star is a reversal candlestick pattern, which is bullish and appears at the end of a downtrend. It is a complex pattern made of three candles, with the first candle being bearish, the second one as indecisive, and the third one being bullish.

Along with this bullish formation, the stock has managed to close above its weekly pivot and also above short-term moving average, i.e. 8-day EMA. Among the momentum indicators, the 14-period RSI is currently quoting at 41.59 levels and it has given a positive crossover, suggesting a positive breath in the stock. The stochastic oscillator is also indicating some bullish strength as per cent K is above the per cent D.

Additionally, the Ichimoku chart on the 60-minute time frame is giving a positive view as it closed above the KS and TS lines. Another important aspect is that the KS line crossed above the TS line, which is also a bullish sign. 

Going ahead, the zone of Rs 1,270-1,295 is likely to act as an immediate hurdle for the stock, as it is the confluence of the short-term 13-day EMA and 20-day EMA. While on the downside, Monday’s low (doji candles low) of Rs 1,085 will be a major support for the stock.

On Tuesday, the stock of Godfrey Phillips India closed at Rs 1,257.30 per share, surged by 11.73 per cent. The stock opened at Rs 1,159.95 per share and hit an intraday high of Rs 1,269 and a low of Rs 1,139.25 per share on BSE.