Orient Electric gives trendline breakout

The stock of Orient Electric Limited has given a downward sloping trendline breakout, formed by connecting swing highs from March 2020. This breakout was supported by above 50-day average volume. Additionally, the stock formed a sizeable bullish candle on the breakout day, which adds strength to the breakout.

The major trend of the stock is bullish as it is trading above its weekly pivot and above its long and short-term moving averages, i.e. 20-day, 50-day, 100-day and 200-day EMAs. The leading indicator, 14-period daily RSI, is currently quoting at 69.17 and it is in a rising trajectory. The fast stochastic is also trading above its slow stochastic line. Moreover, the other volume-based indicators like on-balance volume (OBV) and Money Flow index are also very strong.

Going ahead, we expect the bias to remain positive as long as the stock sustains above Friday’s low of Rs 185 level. On the higher side, the level of Rs 215, followed by Rs 232, would be seen as the next resistance zone for the stock.

On Friday, the stock of Orient Electric closed at Rs 199 per share, surged by 6.96 per cent. The stock opened at Rs 187.20 per share and hit an intraday high of Rs 204 and a low of Rs 185 per share on NSE.