Metropolis gives trendline breakout

The stock of Metropolis Healthcare Ltd. has given downward sloping trendline breakout on daily scale. This breakout was confirmed by the above 50-day average volumes. Additionally, the stock formed a sizeable bullish candle on breakout day, which adds strength to the breakout.

The short term trend of the stock is bullish as it is trading above its weekly pivot and above its short term moving averages, i.e. 20-day EMA and 50-day EMA. The 14-period RSI on the daily chart is currently quoting at 75.88, suggesting that the stock is in bullish zone. The daily MACD is trading above the zero line and signal line for the past three trading sessions. The histogram is suggesting that the upward momentum is picking up. Moreover, the ADX is very strong at 28.59. 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. 1067.40 is likely to act as a good support and, therefore, any intra-day dip towards Rs. 1090-1067.40 should be used as buying opportunity. On the higher side, the level of Rs. 1205, followed by Rs. 1220, would be seen as the next resistance zone for the stock.

On Friday, the stock of Metropolis Healthcare closed at Rs. 1161.90 per share, up by 8.40 per cent. The stock opened at Rs. 1078.65 per share; hit an intraday high of Rs. 1174 and a low of Rs. 1067.40 per share on NSE.