Technical Bits: TV18 gives trendline breakout

The stock of TV18 Broadcast Limited has given downward sloping trendline breakout on Friday formed by connecting swing highs from October 16, 2018. The breakout was supported by strong volumes. Additionally, the stock formed a sizeable bullish candle on breakout day, which adds strength to the breakout.

 The stock is trading above its short-term moving averages, i.e. 20-day EMA, 50-day EMA and 100-day EMA, which suggests that the stock is in a short-term uptrend. The leading indicator 14-period day RSI valued at 68.80 is in bullish zone and the MACD is also trading above its zero line. The other volume-based indicators like OBV and Money Flow index are also very strong. Additionally, the ADX and +DI is above the -DI, which indicates positive strength in the stock.

 In the near term, the zone of Rs. 36.05 to Rs. 35.10 is likely to act as short-term support as 20-day, 50-day and 100-day EMA are placed in that region. While on the upside, any decisive close above its 200-day EMA which is currently placed at 39.35, the stock is likely to extend its northward journey.

 On Friday, the stock of TV 18 Broadcast Limited closed at Rs. 38.50 per share, surged by 9.22 per cent. The stock opened at Rs. 35.80 per share and hit an intraday high of Rs. 38.95 and a low of Rs. 35.25 per share on BSE.