Technical Bits: Titan bounces from upward sloping trendline support

The stock has given a bounce from the edge of the rising trendline support formed by connecting swing lows form October 9, 2018 and it coincides with the 34-day simple moving average, considering the daily time frame. The reversal from the support is justified with good volumes. Additionally, the stock had formed a sizeable bullish candle, which suggests the bulls are taking control near short-term support.

The stock is trading above its weekly pivot and above its short and long-term moving averages. The leading indicator RSI is currently quoting at 60.88, and it is trading above its 9-day average. The fast stochastic is also trading above its slow stochastic, which suggest bullish bias. The trend strength is extremely high as the Average Directional Index (ADX) is above 35 and -DI is much below the +DI and ADX.

 In near term, the zone of Rs. 1090-1085 is likely to act as major support as it is the confluence of 34-day simple moving average and upward sloping trendline support. While on the upside, the level of Rs. 1,130 will be the short-term resistance for stock. A follow-through move above this level would lead to an extension of the pull-back toward Rs. 1,150, followed by Rs. 1,220.

On Tuesday, the stock of Titan Company closed at Rs. 1,122.20 per share, surged by 2.93 per cent. The stock opened at Rs. 1,093.95 per share and hit an intraday high of Rs. 1,126.35 and a low of Rs. 1,093.65 per share on BSE.