Rites gives downward sloping trendline breakout

The stock of Rites Limited has given downward sloping trendline breakout, formed by connecting swing highs from August 2018. The breakout was supported by robust volumes. Additionally, the stock formed a sizeable bullish candle on the breakout week, adding strength to the breakout. With this trendline breakout, the daily ADX, which shows the strength of the trend, turned upside and moved above the -DI.

Currently, the stock is trading above its 20-day EMA (244.90), 50-day EMA (236.40), 100-day EMA (228.40) and 200-day EMA (219.70), which indicates a medium-long term uptrend. The 14-period RSI on the weekly chart is currently quoting at 67.05 and it is in the rising trajectory, which suggests bullish bias. The weekly stochastic oscillator is also suggesting some bullish strength as %K is above the %D. Moreover, the daily MACD is above the zero line and signal line for the past 15 trading sessions. The histogram is suggesting that the momentum is picking up.

In the near-term, the zone of Rs. 253-Rs. 250 is likely to act as major support as it is confluence of 13-day EMA and horizontal support. While on the upside, in case of a movement above Friday's high of Rs. 281.90 level, the stock is likely to extend its northward journey.