Advanced Enzyme Technologies give pennant breakout

The stock of Advanced Enzyme Technologies has given a pennant pattern breakout on the daily time frame. The breakout was confirmed by the above 50-day average volumes.

The pennant is a short-term trend continuation pattern and it has conical bodies that are formed during a period of consolidation. Price consistently reaches higher lows and lower highs, creating two converging trendlines that forms this conical shape. The breakout above the downward sloping trendline signals that the previous uptrend has resumed.

Along with this pattern breakout, the stock has also managed to close above its long-term moving averages, i.e. 100-day EMA and 200-day EMA. The leading indicator, 14-period daily RSI, is currently quoting at 67.79 and it has given a downward sloping trendline breakout, which depicts further upside momentum. The daily MACD stays bullish, as it is trading above its zero line and signal line.

Going ahead, we expect the bias to remain positive as long as the stock sustains above Thursday’s low of Rs 140.25 level. On the higher side, the level of Rs 184.40, followed by Rs 187.35, would be seen as the next major resistance for the stock.

On Thursday, the stock of Advanced Enzyme Technologies closed at Rs 165.90 per share, surging by 17.83 per cent. The stock opened at Rs 142.80 per share and hit an intraday high of Rs 168.95 and a low of Rs 140.25 per share on NSE.