Jubilant FoodWorks bounce from upward sloping trendline support

Considering the weekly timeframe, the stock of Jubilant FoodWorks Limited has bounced back from the edge of the rising trendline support that is formed by connecting the swing lows from October 2018 and coinciding with long-term moving average, i.e. 200-week EMA level. The reversal from the support is further justified with strong volumes.

The leading indicator, 14-period daily RSI, is currently quoting at 43.27 and it is trading above it nine-day average. Interestingly, the daily RSI has broken out of inverse head and shoulders, which is a very bullish sign. The weekly and daily stochastic has also given a positive crossover, which indicates a further upward momentum.

The Ichimoku chart on 60-minute time frame is clearly giving a positive view as it closed above Ichimoku cloud, KS and TS lines. Another important aspect is that the KS line crossed above the TS line, which is also a bullish sign. 

Going ahead, the level of Rs 1,293 is likely to act as an immediate support. A major support is placed in the zone of Rs 1,160-Rs 1,130 as it is the confluence of 200-week EMA and upward sloping trendline support. On the higher side, the level of Rs 1,655, followed by Rs 1745, would be seen as the next resistance zone for the stock.