REC forms opening bullish Marubozu candle

The stock REC Limited forms opening bullish marubozu candle above horizontal trendline in the daily time frame, this suggests that the bulls were in the dominant position. The opening bullish marubozu candle has no shadow extending from the open price end of the body. Opening bullish marubozu candle indicates extreme bullishness. 

The stock is trading above its 20-day, 50-day, 100-day and 200-day exponential moving average. Among the momentum indicators, the 14-period daily RSI is quoting at 65.69 and it is in rising trajectory, which suggests bullish bias. Moreover, the daily MACD stays bullish as it is trading above its signal line.

In the near term, the zone of Rs. 127- Rs. 130 is likely to act as major support as is a confluence of horizontal trendline and short-term 13-day EMA. Failure to hold this support would lead to further correction up to the 20-day EMA, which is currently placed at Rs 125.45. While on the upside, above Monday's high of Rs 135.60 level, the stock is likely to extend its northward journey.

On Tuesday, the stock of REC closed at Rs. 134.35 per share, surged by 1.55 per cent. The stock opened at Rs. 130 per share and hit an intraday high of Rs. 134.80 and a low of Rs. 130 per share on BSE.