L&T Technology Services gives trendline breakout

Considering the daily timeframe, the stock of L&T Technology Services (LTTS) has given a downward sloping trendline breakout, formed by connecting swing highs since May 2019. Further, the breakout is supported by a robust volume of more than 10 times of 50-day average volume, indicating a strong buying interest by the market participants. The 50-day average volume was 1.78 lakh, while today, the stock has witnessed the total volume of 18 lakh.

Interestingly, the weekly RSI has also given a downward sloping trendline breakout and it is in a bullish trajectory. It is also making higher highs and higher lows. The indicator is exactly moving along with the price. 

As the stock is trading at an all-time high level, it is trading above its short and long-term moving averages and is in an ascending order, which suggests that the trend is strong. The weekly ADX and +DI is above the -DI, which indicates a positive strength in the stock. The other volume-based indicators such as OBV and Money Flow Index are also very strong.

Going ahead, the stock has immediate support in the zone of Rs 1,665-Rs 1690 as the short-term 5-day EMA and 8-day EMA is placed in that region. Moreover, major support is placed in the zone of Rs 1,605-Rs 1,590 as it is the confluence of 34-day EMA and the upward sloping trendline support.

On Tuesday, the stock of L&T Technology Services closed at Rs 1,809.95 per share, surged by 9.83 per cent. The stock opened at Rs 1,646.95 per share and hit an intraday high of Rs 1,879.40 and a low of Rs 1,646.90 per share on NSE.