Technical Bits: V-Guard forms opening bullish Marubozu candle

The stock of V-Guard Industries has formed opening bullish Marubozu candle on the daily time frame. The opening bullish Marubozu candle has no shadow extending from the open price end of the body.

Opening Bullish Marubozu candle indicates extreme bullishness. The expectation is that the sudden change in sentiment will be carried forward over the next few trading sessions and hence traders should look for buying opportunity.

The short and long-term trend is bullish, as the stock is trading above its 20-day EMA, 50-day EMA, 100-day EMA and 200-day EMA. The 14-period RSI on the daily chart is currently quoting at 55.95 and it is in the rising trajectory, which suggests bullish bias. The daily stochastic oscillator is also suggesting some bullish strength as %K is above the %D. Moreover, the momentum indicator MACD line has crossed above the signal line, which resulted in the histogram turning positive.

Going ahead, we expect the bias to remain positive as long as stock sustains above Monday’s low of Rs. 227.80 level. On the higher side, the level of Rs. 242, followed by Rs. 250 would be seen as the next resistance zone for the stock.

On Monday, the stock of V-Guard Industries closed at Rs. 237.50 per share, surging by 4.26 per cent. The stock opened at Rs. 227.80 per share and hit an intraday high of Rs. 237.90 and a low of Rs. 227.80 per share on NSE.