JK Cement bounces from trendline support

Considering the daily timeframe, the stock of JK Cement Limited has bounced from the edge of the rising trendline support (on a logarithmic scale) formed by connecting swing lows from May 12, 2020, and coincides with the 50-day exponential moving average.  

The reversal from the support is justified by the above 50-day average volumes. Additionally, the price action has formed a sizeable bullish candle, which suggests that the bulls are taking control near the short-term support.  

Further, the stock is trading above its weekly pivot and also, above its long and short-term moving averages, i.e. 20-day, 50-day, 100-day, and 200-day EMAs. These moving averages are exactly in an ascending order, which suggests that the trend is strong.  

Talking about the indicators, the 14-period daily RSI has surged above the 60 mark for the first time since December 08, 2020. The RSI is in a rising mode, which suggests bullish momentum. The stochastic has also recently given a positive crossover, which supports the overall bullish price structure. Moreover, the MACD line just crossed the signal line, and the histogram became green.  

Going ahead, the stock has strong support in the zone of Rs 1,890-Rs 1,850, while on the higher side, major resistance is placed in the zone of Rs 2,200-Rs 2,235 level.  

On Tuesday, the stock of JK Cement Limited closed at Rs 2,095.60 per share, surged by 6.79 per cent. The stock opened at Rs 1,968.35 per share and hit an intraday high of Rs 2,116.75 & a low of Rs 1,950 per share on NSE.