FLFL retests Ascending Triangle breakout surges more than 3 per cent

Kishor Biyani promoted Future Lifestyle Fashions surged as much as 3 per cent in an otherwise vary market conditions. The stock is part of the defensive sectors of FMCG and pharma which are trading flat to positive when all the other sectoral indices are in the negative territory.

FLFL, a BSE 500 FMCG operating departmental stores, has been trading with higher bottoms and multiple resistance at tops forming an Ascending Triangle pattern in the daily time frame starting from June 2017. The multiple resistance range being 399-410. Thereby, the stock breached its multiple resistance range on March 1, 2018 and surged up to 428 which is its all-time high level. Thereafter, the stock witnessed immediate pullback for three consecutive trading sessions up to 382 levels and consolidated there for the next six trading days.

Last week on Friday, the stock retested the upper trendline and attempted a bounce but failed to sustain and closed flat to negative. However, on Monday, the stock has rebound yet again and hit above the previous high. The rebound is supported by volume spurt and oscillators trailing above 60 depicting momentum. The stock holds Upper Bollinger Band resistance at 423 levels and hence if it sustains above 423-425 levels on a closing basis, the stock has a huge potential upside of 80-100 points in the coming sessions.