Technical Bits: Syngene gives ascending triangle breakout

The stock of Syngene International has given ascending triangle breakout on a weekly scale. This breakout was confirmed by the above 50-week average volumes. The ascending triangle is a bullish formation that usually forms during an uptrend as a continuation pattern.

The major trend of the stock is bullish as it is trading above its weekly pivot and above its long-short term moving averages, i.e. 20-day, 50-day, 100-day and 200-day EMAs and these moving averages are exactly in an ascending order, which suggests that the trend is strong. Interestingly, the 14-period weekly RSI has broken out of an inverted head and shoulders, which is a very bullish sign. The weekly MACD stays bullish as it is trading above zero line for the last two weeks. Moreover, The trend strength is extremely high as the daily ADX is above 45 and -DI is much below the +DI and ADX.

Going ahead, the stock has immediate support in the zone of Rs. 657-650 as the horizontal trendline support and short-term 8-days EMA is placed in that region, while the major support is placed in the zone of Rs. 640-630 as it is the confluence of short term 13-day EMA and 20-day EMA. On the higher side, any sustainable move above the level of Rs. 710 is likely to open up gates for further rally towards the levels of Rs. 755, followed by Rs. 790.