Heidelberg Cement carves a symmetrical triangle pattern

Considering the weekly time frame, the stock of Heidelberg cement India Limited is trading in Symmetrical triangle pattern since last 18 weeks. As of now, price action has narrowed substantially and the price has reached near the apex point of the triangle, which indicates that the stock is likely to give a breakout in the coming weeks.

The symmetrical triangle can be a continuation or a reversal pattern; although, more often, it is a continuation pattern. Besides the triangle pattern, the weekly chart shows that the Bollinger Bands have contracted on weekly time frame, which indicates an early signal of a bigger move. In the present week, the volumes recorded were above 50-week average, which is a sign of accumulation.

The major trend of the stock is bullish as it is trading above its weekly pivot and above its long-short term moving averages, i.e. 20-week, 50-week, 100-week and 200-week EMAs and these moving averages are exactly in an ascending order, which suggests that the trend is strong. From the momentum indicators perspective, the 14-period daily RSI is currently quoting at 51.46 and it is trading above its 9-day average. The daily MACD stays bullish as it is trading above the zero line.

Going ahead, the zone of Rs. 201.50-Rs. 202.50 is likely to act as an immediate hurdle for the stock as upper trendline of Triangle pattern is placed in that region. While on the downside, the zone of Rs. 185- Rs. 186 is likely to provide a strong support as it is the confluence of 34-week exponential moving average and lower trendline of triangle pattern.