DLF gives a downward channel breakout

The stock of DLF Limited has given a downward sloping channel breakout on the weekly timeframe. This breakout was confirmed by above 50-week average volumes. With this channel breakout, the stock's Relative Strength Index (RSI) has reached its highest value in the last 14-weeks, which is a bullish sign. Also, it has managed to close above the 60 mark after a span of almost seven months. 

Currently, the stock is trading above its 20-week EMA (173.25), 50-week EMA (176.85), 100-week EMA (179.50), and 200-week EMA (179.35), which indicates a medium-long term uptrend. Among the momentum indicators, the fast stochastic is trading above its slow stochastic line and has recently given a downward sloping trendline breakout. The momentum indicator, weekly MACD line, has crossed above the signal line, resulting in in the histogram turning positive. Moreover, the other volume-based indicators, such as OBV and Money Flow index, are also showing strength.

Going ahead, the stock has strong support in the zone of Rs. 193-189 while, on the higher side, the major resistance is placed in the zone of Rs. 210-214 levels.

On Friday, the stock of DLF closed at Rs. 203.20 per share, up by 5.59 per cent. The stock opened at Rs. 196 per share and hit an intraday high of Rs. 209.70 and a low of Rs. 195.50 per share on BSE.