Stock watch: Is BSE Limited all set to zoom?

Post consolidating for 16 weeks in an ascending triangle chart pattern, BSE Limited on weekly charts gave breakout with increased volumes. Read on to find out more.

BSE Limited was listed in the last week of January 2017 and from there onwards, it was in a continuous southward trend for almost three years. However, in the month of March 2020, it made its all-time low of 256, before it gave a long-term trendline breakout in July 2020. The stock in August 2020 witnessed a pullback and took good support on its long-term trendline. The stock post breaking out of its long-term downward trendline, it went into a superb rally depicting higher highs and higher lows. That being said, the rally in BSE Limited offered a lot of entry opportunities for market participants.   

Those investors, who have missed the opportunity to enter the stock, now have a great chance. On the weekly charts, the stock is showing an ascending triangle chart pattern. Also, the stock has already completed its pullback journey on the 5-minutes and 15-minutes timeframes. The stock, however, is presently moving in a zone of 1,575 to 1,640 levels on lower time frames.  

An ascending triangle is nothing but a bullish chart pattern. It usually suggests a continuation of the price action. This means if this chart pattern occurs in a bullish move and gives a valid breakout, then it is assumed that the stock will continue the run-up. 

Above is the weekly chart of BSE Limited.

The Relative Strength Index (RSI) is presently trading in an overbought zone and is depicting divergence when compared with the price action. On weekly charts, it is presently trading at 75.99 which is above its 9-Day Exponential Moving Average (EMA) of 74.11. MACD (Moving Average Convergence Divergence) is in the positive territory and is presently trading above its signal line. Bollinger Bands on the flipside is suggesting a pullback. That said, the pullback has already been initiated. On weekly charts, the price is still trading above the upper Bollinger band.  

At the time of writing the price was trading at 1,545.