Know which low-priced IT stock formed a bullish candle!

An Indian multinational financial technology company, Infibeam Avenues Ltd has formed a bullish engulfing candlestick pattern on the daily chart. This bullish formation had happened along with robust volume, indicating a strong buying interest by the market participants. The bullish engulfing candlestick pattern is considered to be a bullish reversal pattern and usually, occurs at the bottom of a downtrend.    

Interestingly, the bullish formation took place near the horizontal trendline support. Further, the stock has also surged above its short-term moving averages, i.e. 5-day EMA and 8-day EMA. 

The momentum indicators and oscillators are also supporting the overall bullish formation on the price chart. The leading indicator i.e. the 14-period daily RSI is currently quoting at 41.19 level and also, trading above its nine-day average. The daily RSI is in a rising mode. The stochastic oscillator has also given a bullish crossover and surged above its prior swing high.     

Going ahead, if the stock sustains above Friday’s session high of Rs 43.15 and trades convincingly above this level, then there is a high probability that Friday’s lowest point of Rs 40 would become a temporary bottom for the stock.