Intellect Design bounces from upward sloping trendline support

Intellect Design Arena Limited is currently trading at Rs. 225.80 per share. On the weekly scale, the stock has given a bounce from the edge of the rising trendline support formed by joining lows from August 11, 2017. Considering the daily time frame, on Monday the stock has formed a Hammer candlestick pattern followed by the sizeable bullish candle on Tuesday which predicts bulls are taking control near the support zone.

The 14-period RSI is quoting around 52.33 and there is positive divergence is developing. Daily MACD stays bullish as it trades above its signal line. The stock is trading above its crucial long-term moving average, i.e. 200-Day Exponential moving average.

If the stock closes above its short-term moving average, i.e. 21-days exponential moving average, the uptrend will be confirmed. For the short-term, Rs. 200- Rs. 190 is likely to act as a crucial support, while on the upside Rs. 240-Rs. 235 is likely to act as a minor resistance. The stock is expected to touch Rs. 260-Rs. 270 in the coming weeks.