Radico gives trendline breakout

The stock of Radico Khaitan Limited has given a downward sloping trendline breakout on Monday, which is formed by connecting swing highs from August 16, 2019. The breakout was supported by strong volumes. Additionally, the stock has formed an opening bullish Marubozu like candle on the breakout day, which added strength to the breakout. The opening bullish Marubozu candle has no shadow extending from the open price end of the body and it indicates extreme bullishness.

Majorly, the stock is displaying a bullish trend as it is trading above its weekly pivot and short-long-term moving averages, that is, 20-day EMA, 50-day EMA, 100-day EMA, and 200-day EMA. The leading indicator, 14-period daily RSI, is currently quoting at 70.52 and is in the rising trajectory, which suggest a bullish bias. The daily MACD stays bullish, as it is trading above its zero line and signal line. The histogram is suggesting a pickup in momentum. Moreover, the ADX is very strong at 31.63. The -DI is much below the +DI and ADX is above the -DI. This shows the technical strength in the stock. 

Going ahead, we expect the bias to remain positive as long as the stock sustains above its 20-day Exponential moving average, which is currently quoting at Rs 318 level. On the higher side, the level of Rs 365, followed by Rs 380, would be seen as the next resistance zone for the stock.

On Monday, the stock of Radico Khaitan closed at Rs 349.90 per share, reporting a surge by 5.57 per cent. The stock opened at Rs 331.20 per share and hit an intraday high of Rs 357.90 and a low of Rs 331.05 per share on the NSE.