Technical Bits: JSW Steel gives consolidation breakout

The stock of JSW Steel Limited gave a consolidation breakout on the daily time frame along with robust volumes. Additionally, the stock formed a sizeable bullish candle on the breakout week, which adds strength to the breakout. With this consolidation breakout, it has also managed to close above its 100-day EMA and 200-day EMA.

The stock's Relative Strength Index (RSI) has also given horizontal trendline breakout, which is bullish. The daily MACD stays bullish as it is trading above zero line and stochastic has also given positive crossover. The other volume-based indicators like OBV and Money Flow index are also very strong. Additionally, the trend strength indicator ADX is at a healthy level of 25.27. The directional parameter +DI is much above the -DI.

The stock has strong support in the zone of Rs. 292-295, while on the higher side the level of Rs. 325 is likely to act as an immediate hurdle.

On Tuesday, the stock of JSW Steel closed at Rs. 307.90 per share, surged by 4.78 per cent. The stock opened at Rs. 295 per share and hit an intraday high of Rs. 310.30 and a low of Rs. 291 per share on BSE.