MFSL gives Symmetrical Triangle breakout

The stock of Max Financial Services Limited (MFSL) has given A Symmetrical Triangle breakout on the weekly timeframe with massive volumes - the highest buying volumes recorded after June 02, 2017. With this triangle breakout, the stock has also managed to close above its crucial 200-week EMA after a span of almost one year.

The major trend of stock is bullish as it is trading above its long- and short-term moving averages. The leading indicator, 14-period weekly RSI, has come out of squeeze and entered into a bullish area. Interestingly, the weekly RSI has also broken out of an Ascending Triangle pattern, which is also a bullish sign. The weekly stochastic oscillator is suggesting some bullish strength as well, since %K is above the %D. The momentum indicator, the weekly MACD line, has crossed above the signal line and resulted in the histogram turning positive. Moreover, the surge in +DI is suggesting that the trend will strengthen further.

Going ahead, the zone of Rs. 510-Rs. 520 is likely to act as an immediate hurdle for the stock; a follow-through move above this level would lead to an extension of the pull-back toward Rs. 540, followed by Rs. 560. While on the downside, the 13-day exponential moving average is likely to act as short-term support, which is currently placed at Rs. 435.50 level.