Quick Heal Technologies gives trendline breakout

The stock of Quick Heal Technologies has formed a spinning top candlestick pattern as of March 27, 2020, and thereafter, marked the sequence of higher tops & higher bottoms. The stock has witnessed more than 190 per cent upward momentum from its 52-week low to the high of Rs 183.30 level.   

However, after registering the high of Rs 183.30, the stock has witnessed a minor correction. During this corrective phase, the volume was mostly below the 50-week average volume, which suggests its routine decline after a robust move. The correction is halted in between the 23.6 per cent and 38.20 per cent Fibonacci retracement level of its prior upward move (Rs 63.10-Rs 183.30) and it coincides with the 20-week EMA level.   

Currently, the stock has given a downward sloping trendline breakout on the daily timeframe, which suggests bullish momentum. Further, this breakout is supported by a robust volume of more than 10 times of the 50-day average volume, indicating a strong buying interest by the market participants. The 50-day average volume was 3.94 lakh, while on Tuesday, the stock has witnessed a total volume of 42.33 lakh.   

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 and these moving averages are exactly in ascending order, which suggests that the trend is strong.  

Among the momentum indicators, the daily and the weekly RSI is in a bullish trajectory. The daily ADX is currently quoting at 18.27 and suggests that the trend is yet to be developed. Directional indicators continue in the ‘buy’ mode as +DI continues above –DI. Moreover, the other volume-based indicators like 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 its 20-day EMA level, which is currently quoting at Rs 160 level. On the higher side, the zone of Rs 183-Rs 193 would be seen as the next resistance zone for the stock.    

On Tuesday, the stock of Quick Heal Technologies surged by 9.57 per cent and closed at Rs 176.40 per share. The stock opened at Rs 161.50 per share and hit an intraday high of Rs 180.90 and a low of Rs 158.25 per share on NSE.