Bhageria Industries give trendline breakout

The stock of Bhageria Industries Limited has given a downward sloping trendline breakout on the weekly time frame, which is formed by connecting swing highs from November 2016. This breakout was confirmed by above 50-week average volumes. 

The major trend of the stock is bullish as it is trading above its weekly pivot and above its long-term and short-term moving averages, i.e. 20-day, 50-day, 100-day and 200-day EMAs. The leading indicator, 14-period weekly RSI is currently quoting at 68.29 and it is in super bullish zone. The weekly RSI has given a two-year flat zone breakout, which depicts a further positive momentum. The weekly and daily MACD stays bullish, as it is trading above its zero line and signal line. The histogram is suggesting that the momentum is picking up.

Moreover, the stock is clearly uptrend and the trend strength is extremely high. Average Directional Index (ADX), which shows the trend strength, is as high as 55.90 on a daily chart and 25.11 on a weekly chart. Generally, above 25 levels is considered as a strong trend. In both the time frames, the stock is meeting the criteria.

Going ahead, we expect the bias to remain positive as long as the stock sustains above its 20-day Exponential Moving Average (EMA), which is currently quoting at Rs 126 level. On the higher side, the level of Rs 159, followed by Rs 168, would be seen as the next resistance zone for the stock.