Technical Bits: Apollo Hospitals gives trendline breakout

The stock of Apollo Hospitals Enterprises has given downward sloping trendline breakout on weekly scale formed by connecting swing highs from February 2016. This breakout was confirmed by the above 50-week average volumes.

Additionally, the stock had formed opening bullish Marubozu candle on breakout week, which adds strength to the breakout. The opening bullish Marubozu candle has no shadow extending from the open price end of the body. Opening bullish Marubozu candle indicates extreme bullishness.

The major trend of the stock is bullish as it is trading above its weekly pivot and above its long-short term moving averages, i.e. 20-week, 50-week, 100-week and 200-week EMAs and these moving averages are exactly in an ascending order, which suggests that the trend is strong. The leading indicator weekly RSI is in the bullish zone. The daily MACD histogram is suggesting that the momentum is picking up. Moreover, the daily ADX is very strong at 23.53. The -DI is much below the +DI. This shows the technical strength in the stock.

Going ahead, the stock has strong support in the zone of Rs. 1,330-1,300, while on the higher side, the major resistance is placed in the zone of Rs. 1,420-1450 level.

On Friday, the stock of Apollo Hospitals Enterprises closed at Rs. 1,397.05 per share, surging 4.06 per cent. The stock opened at Rs. 1,343.35 per share and hit an intraday high of Rs. 1,406.20 and a low of Rs. 1,333.15 per share on BSE.