ICICIGI gives Ascending Triangle pattern breakout

The stock of ICICI Lombard General Insurance Company Limited has given an Ascending Triangle pattern breakout on the daily timeframe with a relatively higher volume. The Ascending Triangle is a bullish formation that usually forms during an uptrend as a continuation pattern.

The stock is meeting Daryl Guppy’s multiple moving averages set up rules, as it is trading above both the short- and long-term moving averages. The leading indicator, 14-period daily RSI, is currently quoting at 65.93 and it has recently given a breakout of downward sloping trendline resistance. The stochastic oscillator is suggesting some bullish strength as %K is above the %D. The directional index ADX is also showing the strength in the stock. Moreover, it has given the buy signal in Martin Pring’s long-term KST set up as well.

Going ahead, we expect the bias to remain positive as long as the stock sustains above the Fridays low of Rs 1,364 level. On the higher side, the level of Rs 1,485, followed by Rs 1,520, would be seen as the next resistance zone for the stock.

On Friday, the stock of ICICI Lombard General Insurance Company closed at Rs 1,419 per share, Surged by 4.03 per cent. The stock opened at Rs 1,369.85 per share and hit an intraday high of Rs 1,422 and a low of Rs 1,364 per share on the NSE.