SPARC gives trendline breakout

The stock of Sun Pharma Advanced Research Company Limited has given a downward sloping trendline breakout on the weekly timeframe. This breakout is confirmed by the above 50-week average volumes. With this breakout, the weekly ADX, which shows the strength of the trend, turned upside and moved above the -DI.

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-day, 50-day, 100-day, and 200-day EMAs. The 50-DMA crossed over the 200-DMA, 9 days ago, and was called the 'golden crossover', which is a long-term bullish signal. The leading indicator, 14-period weekly RSI, is currently quoting at 60.21 and is in rising trajectory, which suggests a bullish bias. The weekly and daily MACD stays bullish, as it is trading above its zero line and signal line. The histogram is suggesting that the momentum is picking up. Moreover, the other volume-based indicators, such as OBV and Money Flow Index are also very strong.

Going ahead, the zone of Rs 166-Rs 164 is likely to act as good support as 13-day EMA and 20-day EMA are placed in that region. While on the upside, the level of Rs 204, followed by Rs 215, would be seen as the next resistance zone for the stock.

On Friday, the stock of Sun Pharma Advanced Research Company closed at Rs 184.80 per share, reporting a surge of 7.79 per cent. The stock opened at Rs 172.90 per share and hit an intraday high of Rs 185.40 and a low of Rs 172.10 per share on the NSE.