Havells India forms triple bottom pattern

The stock of Havells India Limited has formed triple bottom pattern on the daily time frame. On Tuesday, the stock has given a neckline breakout of triple bottom pattern. This breakout was confirmed by above 50-day average volumes. 

The triple bottom patterns are found at the end of downtrend where the price makes three attempts of making new lows in the same area.

The stock after a span of almost three months has managed to successfully close above its crucial short-term moving average i.e. 50-day EMA. The leading indicator, 14-period daily RSI, is currently quoting at 61.36 and it has also given three months flat base pattern breakout, which supports the overall bullish price structure. The daily MACD stays bullish as it is trading above its zero line and signal line. Moreover, a positive divergence was also spotted at the daily time frame on the RSI, which indicates limited downside. Positive divergence occurs when the price is making a lower low, while the RSI forms a higher low.

Going ahead, the stock has a strong support in the zone of Rs 620-Rs 614 while, on the higher side, the major resistance is placed in the zone of Rs 660-Rs 666 level.

On Tuesday, the stock of Havells India closed at Rs 643.50 per share, surged by 2.63 per cent. The stock opened at Rs 633 per share and hit an intraday high of Rs 647.50 and a low of Rs 631 per share on BSE.