REC Ltd gives trendline breakout

The stock of REC Limited has given a downward sloping trendline breakout on the daily time frame. This breakout is confirmed by above 50-day average volumes. Additionally, the stock formed a sizeable bullish candle on the breakout day, adding strength to the breakout. 

The stock after a span of almost three months has managed to successfully close above its crucial short-term moving average i.e. 50-day EMA. The 14-period RSI on the daily chart is currently quoting at 60.81 and it is in a rising trajectory, which suggests a bullish bias. The stochastic oscillator has also given a positive crossover.

Going ahead, the zone of Rs 92-Rs 91.50 is likely to act as a good support as 13-day EMA and 20-day EMA are placed in that region. While on the upside, the level of Rs 108.60, followed by Rs 117.75, would be seen as the next resistance zone for the stock.

On Wednesday, the stock of REC Limited closed at Rs 100.50 per share, surged by 11.20 per cent. The stock opened at Rs 93 per share and hit an intraday high of Rs 102.45 and a low of Rs 91.90 per share on BSE.