SBI Cards & Payment Services gives ascending triangle breakout

The stock of SBI Cards & Payment Services Limited has formed a hammer-like candlestick pattern as on the weekend of May 29, 2020, and thereafter, marked the sequence of higher tops & higher bottoms. The stock has witnessed almost 85 per cent upward momentum from the low of Rs 496 level. However, after registering a high of Rs 918.75, the stock has witnessed a minor throwback. The throwback is halted near the 38.2 per cent Fibonacci retracement level of its prior upward move (Rs 496-Rs 918.75) and it coincides with the 20-week EMA level.  

Currently, the stock has given an ascending triangle pattern breakout on the daily timeframe. This breakout is confirmed by the above 50-day average volume. The ascending triangle is a bullish formation that usually forms during an uptrend as a continuation pattern.   

Majorly, the stock is displaying a bullish trend as it is trading above its weekly pivot and short & long-term moving averages, that is, 20-day EMA, 50-day EMA, 100-day EMA, and 200-day EMA. These moving averages are exactly in an ascending order, which suggests that the trend is strong.  

Interestingly, the leading indicator i.e. the RSI has also given a downward sloping trendline breakout on the daily timeframe, which is a bullish sign. The MACD line just crossed the signal line, and the histogram became green.  

Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to be with a bullish bias. On the downside, important support for the stock is placed in the zone of Rs 840-Rs 832 while on the upside, the prior high of Rs 918.75 will act as an immediate resistance for the stock.  

On Monday, the stock of SBI Cards & Payment Services surged 4.15 per cent and closed at Rs 888.25 per share. The stock opened at Rs 853.80 per share and hit an intraday high of Rs 897 & a low of Rs 853.80 per share on NSE.