Hindalco gives falling wedge pattern breakout
The stock of Hindalco Industries has given falling wedge pattern breakout on the daily time frame. Additionally, the stock had formed a sizeable bullish candle on the breakout day, which adds strength to the breakout.
If the falling wedge pattern appears in a downtrend, it is considered as a reversal pattern. It occurs when the price is making lower highs and lower lows, which form two contracting lines. The falling wedge usually paves the way for a reversal on the upside.
On Monday, the stock has managed to close above its weekly pivot and short-term moving average i.e. 8-day EMA and 13-day EMA. The leading indicator 14-period RSI is currently quoting at 48.36 and it has recently given positive crossover, which indicates that further upward momentum is on the cards. The fast stochastic is also trading above its slow stochastic line. Additionally, the Ichimoku chart on 60-minute time frame is clearly giving a positive view as it closed above the KS and TS lines. Another important aspect is the stock has also managed to close above Ichimoku cloud on 60-minute time frame, which is also a bullish sign.
Going ahead, the stock has strong support in the zone of Rs. 193.75- 192.75 as it has an unfilled upside gap which was formed on May 20, 2019. While on the upside, the 50-day EMA is likely to act as immediate resistance, which is currently placed at Rs. 202.35 level.
On Monday, the stock of Hindalco Industries closed at Rs. 199.35 per share, surged by 3.88 per cent. The stock opened at Rs. 194 per share and hit an intraday high of Rs. 199.80 and a low of Rs. 193.90 per share on BSE.