ICICI Pru forms sizeable bullish candle above trendline resistance

The stock has witnessed a breakout of downward sloping trendline on the weekly time frame along with robust volumes, after forming base around Rs. 300 per share. Additionally, the stock formed a sizeable bullish candle on the breakout week, which added strength to the breakout.

 Meanwhile, it also breached its major 50 and 100-day EMA levels. The 14-period RSI too is quoting around 69.50 supporting momentum in the stock. According to MACD analysis, on the daily time frame, there is a centreline bullish crossover, which is a positive signal. 

For any immediate decline, Rs. 340 level is likely to act as short-term support as it is the confluence of 100-day exponential moving average. While on the upside, the stock is likely to face resistance at Rs. 365, followed by Rs. 380.

On Friday, the stock of ICICI Prudential Life Insurance closed at Rs. 356 per share, up by 2.74 per cent. The stock opened at Rs. 347.80 per share and hit an intraday high of Rs. 358.50 and a low of Rs. 345.85 per share on BSE.