Praj Industries breaches prolonged consolidation ahead of Q4 results

Construction and Engineering company, Praj Industries, surged as much as 6.16 per cent from the previous close with 4.73 times volume spurt. The stock of Praj Industries gave a resistance breakout on closing basis on Monday. This may be ahead of the corporate results which the company is likely to announce on May 16.

Considering the weekly time frame, the stock had given multiple point downward sloping trendline breakout at 85.50 on November 27 and hit 52-week high at 131.50 on January 12 th week. The stock formed a Spinning Top Doji and nose-dived up to 76.55 levels, i.e., just below the trendline level. The stock bounced back, but resisted at 38.2 per cent retracement of the prior downward rally from 52-week high. However, the stock breached out of the level at the start of the current week.

Considering the daily time frame, the stock formed a Rounding bottom from its base at 76.55 till 99.50, but was seen consolidating for nearly 22 sessions. Meanwhile, the stock stayed exactly above its 100 days EMA level. The stock on Monday broke out of its consolidation as well as multiple resistance range of 98.50-99.50. The breakout was supported by volume spurt and 14-period RSI quoting at 66, which suggest momentum, going forward.