Ipca Laboratories gives trendline breakout

Along with robust volumes, the stock of Ipca Laboratories Limited has given a downward sloping trendline breakout on the daily time frame. Additionally, the stock had formed an opening bullish Marubozu candle on the breakout day, which added strength to the breakout. The opening bullish Marubozu candle has no shadow extending from the open price end of the body. The opening bullish Marubozu candle indicates extreme bullishness.

The stock is meeting Daryl Guppy’s multiple moving averages set-up rules as it is trading above both the short and long term moving averages. Among the momentum indicators, the 14-period daily RSI is currently quoting at 69.19 and it is in the bullish zone. The daily MACD stays bullish as it is trading above its zero line and signal line. The histogram is suggesting a pickup in the momentum. Moreover, the daily ADX is very strong at 28.56. The -DI is much below the +DI and ADX is above the -DI. This shows the technical strength in the stock. 

Going ahead, the Friday’s low of Rs. 982 is likely to act as a good support and, therefore, any intra-day dip towards Rs. 1,010-1,000 should be used as a buying opportunity. While on the upside, above Friday's high of Rs. 1,057 level, the stock is likely to extend its northward journey. 

On Friday, the stock of Ipca Laboratories closed at Rs. 1,024 per share, surged by 4.41 per cent. The stock opened at Rs. 982 per share and hit an intraday high of Rs. 1,057 and a low of Rs. 982 per share on NSE.