India Cement gives trendline breakout

The stock of India Cement Limited has given a downward sloping trendline breakout on the daily time frame. This breakout is confirmed by robust volumes. Additionally, the stock formed a sizeable bullish candle on the breakout day, adding strength to the breakout. 

As the stock is trading at 52-week high level, it is above all the short and long-term moving averages. The stock is meeting Mark Minervini’s trend template. It is trading above 40, 30 and 10 daily averages and all of them are trending up. At the same time, they are in a desired sequence. The stock is also meeting Daryl Guppy’s multiple moving averages set-up. The leading indicator, 14-period daily RSI, is currently quoting at 68.23 and it is in a rising trajectory. The momentum indicator MACD line has crossed above the signal line, which resulted in the histogram turning positive.

Going ahead, we expect the bias to remain positive as long as the stock sustains above Friday’s low of Rs 100.30 level. On the higher side, the level of Rs 127.85, followed by Rs 137.80, would be seen as the next resistance zone for the stock.

On Friday, the stock of India Cement closed at Rs 116.95 per share, surged by 15.85 per cent. The stock opened at Rs 102.10 per share and hit an intraday high of Rs 118.80 and a low of Rs 100.30 per share on NSE.