Balrampur Chini forms Three Inside Up candlestick pattern

The stock of Balrampur Chini Mills Limited has formed a Three Inside Up candlestick pattern on the daily scale. The Three Inside Up pattern is representing the confirmation of the Bullish Harami pattern, which shows the success of the forecast.
 
In this pattern, the first candle is a long bearish candle, which closes near its low. The second one is a small bullish candle, which gaps up from the first candle and closes inside the body of the first candle, thus, creating a Harami pattern. The third candle exceeds the high of the first two candles.
 
With this bullish formation, the stock has also managed to close above its weekly pivot and above its crucial short-term moving average, that is, 8-day EMA and 13-day EMA. The leading indicator, 14-period daily RSI, is currently quoting at 48.23 and it is trading above its 9-day average. The daily stochastic oscillator is also suggesting some bullish strength as %K is above the %D. Moreover, there has been a positive divergence between the daily stochastic and the stock price movement, which suggests limited downside.
 
Going ahead, the zone of Rs. 150-Rs. 151 would be an immediate hurdle for the stock as 20-day EMA and 50-day EMA is placed in that region. On the downside, Friday’s low of Rs. 141.40 is likely to act as a crucial support for the stock.
 
On Tuesday, the stock of Balrampur Chini Mills closed at Rs. 148.80 per share, reporting a surge of 3.01 per cent. The stock opened at Rs. 145.10 per share and hit an intraday high of Rs. 149.70 and a low of Rs. 144.40 per share on BSE.