Technical Bits: V-Guard gives symmetrical triangle breakout

The stock of V-Guard Industries Limited has given symmetrical triangle breakout on the weekly 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 symmetrical triangle breakout the weekly ADX, which shows the strength of the trend, turned upside and the directional parameter +DI is trading much above the -DI.

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. The leading indicator 14-period daily RSI is currently quoting 78.91 and it is in a super bullish zone. The weekly MACD has just crossed above the signal line above the zero line and the histogram has turned into bullish momentum. Moreover, the weekly stochastic oscillator is also suggesting some bullish strength as %K is above the %D.

Going ahead, the stock has immediate support in the zone of Rs. 230-229 as the horizontal trendline support is placed in that region, while the major support is placed in the zone of Rs. 220-218 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. 245 is likely to open up gates for further rally towards the levels of Rs. 255, followed by Rs. 265.

On Friday, the stock of V-Guard Industries closed at Rs. 240.55 per share, surged by 2.80 per cent. The stock opened at Rs. 236.95 per share and hit an intraday high of Rs. 244.90 and a low of Rs. 229.25 per share on BSE.