Technical Bits: BEML trades in contracting triangle pattern

The stock of BEML was trading above its 20-day EMA (884.15), 50-day EMA (829.75), 100-day EMA (809.10) and 200-day EMA (886), which indicates the stock is in medium-long term uptrend. Considering the daily time frame, the stock has formed a contracting triangle kind of a pattern and the volumes and price movements are getting squeezed. The triangle pattern falls under the category of the continuation patterns.  

As of now, the momentum in prices has been narrowed substantially and the price has reached near the apex point of the triangle and stock is likely to give breakout in the coming days. The 14-period day RSI cooled off after touching 77.70 zone and at present, it's reading 50.40, which depicts not much momentum in the stock for now.  

For any further upside, the stock needs to form sizeable bullish candle above upper trendline, which is currently placed at Rs. 930, while on the downside, the zone of Rs. 870 to 880 is likely to act as strong support as short-term 21-day EMA and long-term 200-day EMA is placed around these levels.