Coal India gives falling wedge pattern breakout
State-run Coal India formed a sizable bullish candle on the daily chart as on February 26, 2019 along with robust volumes, after making a base with parallel bottoms. Recently, the stock witnessed a breakout of the falling wedge pattern. If the falling wedge pattern appears in a downtrend, it is considered as a reversal pattern. It occurs when the price is making lower highs and lower lows, which form two contracting lines. The falling wedge usually paves the way for a reversal on the upside.
The stock after a span of almost two months has managed to successfully close above its crucial short-term moving average i.e. 20-SMA. Additionally, the 14-day RSI has resolute above the downtrend line signalling an early indication of trend revival and supports overall bullish price structure.
Going ahead, it’s important for the stock to stay above the level of Rs. 221 for the bullish view, on the upside it may scale up to levels of Rs. 228-234.
On Wednesday, the stock opened at levels of Rs. 221.50 on NSE and currently it is trading up by 0.93 per cent at levels of Rs. 222.