Metropolis Healthcare bounces from trendline support

Considering the daily timeframe, the stock of Metropolis Healthcare Limited has given a bounce from the edge of the rising trendline support (on a logarithmic scale) formed by connecting swing lows from March 24, 2020, and it coincides with the 34-day exponential moving average.

The reversal from the support is justified by the above 50-day average volumes. Additionally, the price action has formed a sizeable bullish candle and the stock has managed to close above Rs 1,900 for the first time since March 03, 2020, which suggests that the bulls are taking control near the short-term support.

Talking about the indicators, the positive crossover on the 14-period daily RSI and stochastic, supports the overall bullish price structure. Further, the stock is trading above its weekly pivot and also, above its long and short-term moving averages, i.e. 20-day, 50-day, 100-day, and 200-day EMAs and these moving averages are exactly in an ascending order, which suggests that the trend is strong.

In the near term, the zone of Rs 1,795-1,770 is likely to act as immediate support as it is a confluence of the short-term 13-day EMA and 20-day EMA level. While on the upside, the level of Rs 2,060, followed by 2,110, will be a short-term resistance for the stock.

On Monday, the stock of Metropolis Healthcare closed at Rs 1,916 per share, surged by 9.13 per cent. The stock opened at Rs 1,795 per share and hit an intraday high of Rs 1,955 and a low of Rs 1,761.30 per share on NSE.