Marico gives trendline breakout

Considering the daily timeframe, the stock of Marico Limited has given a downward sloping trendline breakout, formed by connecting swing highs since September 2020. This breakout is confirmed by the above 50-day average volume. Additionally, the stock formed a sizeable bullish candle on the breakout day, adding strength to the breakout. 

The major trend of the stock is bullish as it is trading above its weekly pivot and above its long and short-term moving averages, i.e. 20-day, 50-day, 100-day, and 200-day EMAs. These moving averages are exactly in an ascending order, which suggests that the trend is strong.

Talking about the indicators, the stock's relative strength index (RSI) has reached its highest value in the last 14 days, which is bullish. Also, it has managed to close above the 60-mark after a span of almost 23 trading sessions. The RSI has moved above the prior swing high. The momentum indicator i.e. the MACD line has recently crossed above the signal line, which resulted in the histogram turning positive.

Going ahead, we expect the bias to remain positive as long as the stock sustains above the zone of Rs 368-Rs 365 as it is the confluence of 13-day EMA and 20-day EMA level. On the higher side, the level of Rs 391, followed by Rs 405, would be seen as the next resistance zone for the stock.

On Friday, the stock of Marico closed at Rs 380.50 per share, surged by 1.53 per cent. The stock opened at Rs 373.95 per share and hit an intraday high of Rs 382.55 and a low of Rs 373 per share on NSE.