Jindal Steel gives downward sloping trendline breakout

The stock of Jindal Steel & Power Ltd has given downward sloping trendline breakout on Tuesday along with strong volume. Additionally, the stock formed a sizeable bullish candle on the breakout day, which adds strength to the breakout.

The 14-period day RSI is currently quoting around 51.45 and it has recently given a positive crossover. According to the MACD analysis, on the daily time frame chart, there is a centreline bullish crossover which is positive for the stock.

In the near-term, the level of Rs. 147.60 is likely to act as an immediate resistance as 50-day exponential moving average is placed there. A follow-through move above this level would lead to an extension of the pull-back toward 100-day EMA, which is currently placed at 162.55. While on the downside, 21-day EMA is likely to act as strong support, which is currently quoting around Rs. 137.55.

On Tuesday, the stock of Jindal Steel & Power Ltd closed at Rs. 141.20 per share, surged by 9.84 per cent. The stock opened at Rs. 128.55 per share and hit an intraday high of Rs. 142.50 and a low of Rs. 128.20 per share on BSE.