Motherson Sumi Systems gives trendline breakout

The stock of Motherson Sumi Systems Limited has given a downward sloping trendline breakout, formed by connecting swing highs since August 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. 

Majorly, the stock is displaying a bullish trend as it is trading above its weekly pivot and short and long-term moving averages, that is, 20-day EMA, 50-day EMA, 100-day EMA, and 200-day EMA. The leading indicator i.e. the 14-period daily RSI is currently quoting at 66.78 and it is in a rising trajectory. Also, the RSI has moved above its prior swing high, which is also bullish. The daily MACD stays bullish as it is trading above its zero line and signal line. The histogram is suggesting a pickup in the upside momentum.

Going ahead, the zone of Rs 112-Rs 111 is likely to act as short-term support as it is the confluence of 13-day EMA and 20-day EMA. On the higher side, the prior swing high of Rs 129.50 will be the major hurdle for the stock.

On Monday, the stock of Motherson Sumi Systems closed at Rs 123.05 per share, surged by 5.13 per cent. The stock opened at Rs 118 per share and hit an intraday high of Rs 123.65 and a low of Rs 117.60 per share on NSE.