Raymond gives trendline breakout

The stock of Raymond Limited has given downward sloping trendline breakout on weekly scale. The breakout was supported by strong volumes. Additionally, the stock formed a sizeable bullish candle on breakout week, which adds strength to the breakout. With this consolidation breakout, the ADX, which shows the strength of the trend, turned upside and moved above the -DI.

The major trend of the stock is bullish as it is trading above its weekly pivot and above its long-term and short-term moving averages, i.e. 20-day, 50-day, 100-day and 200-day EMAs. The leading indicator RSI is in bullish zone and the MACD is above zero line and signal line. The fast stochastic is also trading above its slow stochastic line. Additionally, the stock is trading above Ichimoku cloud and Upper Bollinger band line.

Going ahead, the stock has immediate support in the zone of Rs. 802-798 as the 20-day EMA and 200-day EMA is placed in that region. On the higher side, any sustainable move above the level of Rs. 855 is likely to open up gates for further rally towards the levels of Rs. 885, followed by Rs. 925. 

On Friday, the stock of Raymond closed at Rs. 853.05 per share, surged by 6.82 per cent. The stock opened at Rs. 804.60 per share and hit an intraday high of Rs. 855.80 and a low of Rs. 803.70 per share on BSE.