Technical check on Bharti Airtel before earnings

The global telecommunication company, Bharti Airtel Limited will report its Q1FY21 result today. Here is a sneak-peak to the stock’s technical position.

Technically, the stock has formed a reversal hammer-like candlestick pattern as on March 19, 2020, and thereafter, witnessed nearly 38 per upside. After registering a high of Rs 612, the stock has witnessed sideways phase. During this sideways phase mostly, the volume is below 50-day averages volumes, which suggests that it is just routing decline after a robust move. Further, due to sideways range for over two months, Bollinger Bands have contracted, which indicates an early sign of a bigger move.

The stock is meeting the criteria of Mark Minervini’s trend template. The current stock price is above both 150-day (30-weeks) and 200-day (40-weeks) moving average price lines. Moreover, 30 and 40-weekly averages are trending up and at the same time, they are in the desired sequence. Also, a 10-weekly moving average is above both 30 and 40-weekly moving averages.

Talking about the indicators, the daily RSI hovers in a neutral region without any bias. Further, the ADX is also below 10, this clearly indicates a lack of a clear trend. Other indicators are also mirroring the same image.

Going ahead, the important levels to watch out would be Rs 585 on the higher side and Rs 537 on the downside. A break on either side would open doors for a directional move.