Pidilite Industries bounces from upward sloping trendline support

Considering the weekly timeframe, the stock of Pidilite Industries 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 34-week EMA level. The reversal from the support is further justified with strong volumes. Additionally, the stock has formed a sizeable bullish candle, suggesting that bulls are taking control near long-term support.

The major trend of the stock is bullish, as it is trading above its weekly pivot and over its long-short term moving averages, that is, 20-week, 50-week, 100-week, and 200-week EMAs. The 14-period weekly RSI has taken support at 48-45 level many times before, and this time also it has bounced exactly from the same level. Interestingly, the stock has never been in an oversold position in the past 10 years on a weekly chart. The weekly fast stochastic line has also closed above its slow stochastic line. Moreover, the daily MACD stays bullish, as it is trading above its zero line and signal line. The histogram is suggesting a pickup in momentum.

Going ahead, the stock has a strong support in the zone of Rs 1,310-Rs 1,290, while on the higher side, the major resistance is placed in the zone of Rs 1,415-Rs 1,425 level.