ORISSAMINE trades in symmetrical triangle pattern

Considering the daily timeframe, the stock of Orissa Minerals Development Company Limited is trading in the symmetrical triangle pattern since the last 38 trading sessions. As of now, the price action has narrowed substantially and the price has reached near the apex point of the triangle, which indicates that the stock is likely to give a breakout in the coming days.

The symmetrical triangle can be a continuation or a reversal pattern, although more often it is a continuation pattern. Besides the triangle pattern, the daily chart shows that the Bollinger Bands have contracted, which indicates an early signal of a bigger move. 

The major trend of the stock is bullish, as it is trading above its long-short-term moving averages, that is, 20-day, 50-day, 100-day, and 200-day EMAs and these moving averages are exactly in an ascending order, which suggests that the trend is strong. The 50-DMA crossed over the 200-DMA 42 days ago. This, called the 'golden crossover', is a long-term bullish signal. The leading indicator, 14-period daily RSI, is currently quoting at 53.03 and it is trading above its 9-day average. Moreover, the daily stochastic oscillator is also suggesting some bullish strength as %K is above the %D.

Going ahead, the stock has immediate support in the zone of Rs. 1,220-1,200, as it is the confluence of 50-day EMA and upward sloping trendline. On the higher side, any sustainable move above the level of Rs. 1,410 is likely to open up gates for further rally towards the levels of Rs. 1,530, followed by Rs. 1,560.