Phoenix Mills Ltd forms piercing line pattern

The stock of Phoenix Mills Limited has formed a piercing line candlestick pattern on the daily time frame. The piercing line candlestick pattern is considered to be a bullish reversal pattern and usually, occurs at the bottom of a downtrend.

Among the momentum indicators, the 14-period daily RSI is currently quoting at 34.69. The RSI is trading above its nine-day average and it is in rising mode, which indicates a further upward momentum. The daily stochastic oscillator is also suggesting some bullish strength as per cent K is above the per cent D. Moreover, the positive divergence is clearly visible between daily RSI, daily stochastic and stock price movement, which suggests a limited downside.

Going ahead, if the stock sustains above Thursday’s session high of Rs 666.35 and trades convincingly above this level then, there is a high probability of Thursday’s low of Rs 483 becoming a temporary bottom for the stock.

On Thursday, the stock of Phoenix Mills closed at Rs 647.25 per share, surged by 11.65 per cent. The stock opened at Rs 539.75 per share and hit an intraday high of Rs 666.35 and a low of Rs 483 per share on NSE.