Best trading setup to watch out for!

The stock of EIH Limited has witnessed a breakout of descending trendline formed by adjoining the highs of November and January on the weekly chart.

The stock of EIH Limited has witnessed a breakout of descending trendline formed by adjoining the highs of November and January on the weekly chart. Moreover, the breakout was witnessed with a sizeable bullish candle, which was accompanied by above-average volumes.   

Furthermore, the stock has gained 7 per cent on a weekly basis while it jumped more than 23 per cent from its recent low of Rs 121.70 levels.  

Going forward, the stock has placed immediate resistance around the level of Rs 155, which is its prior swing high. Once the stock moves and sustains above this level, then it may continue its northward journey.   

On the daily chart, the stock is trading above its 20, 50, 100, and 200-DMA. Meanwhile, on the weekly chart, it has witnessed a breakout of 20-week moving average in the last week and managed to sustain above it, which indicates further strength in the stocks.  

The 14-period RSI has marked a fresh 14-period high and it’s above the 60-mark on both the daily as well as on the weekly charts, showing super bullishness and pointing northwards, which thus, supports the positive bias. The MACD line is crossing the signal line and zero line this week while on the daily chart, it is trading above its signal line & zero line.