Analyzing India

RECLTD: Breakout From An Ascending Triangle


Rural Electrification Corporation Limited (RECLTD.IN)

  • This stock has now witnessed a breakout from a bullish Ascending Triangle formation.
  • The breakout occurred above 127.50, but the stock might still witness some pullback, with the zone of 127-130 potentially acting as support. Once the consolidation is out of way, there is a high probability that the momentum will return to the stock.
  • The RSI has marked a fresh 14-period high, which is bullish. It also shows a bullish divergence against the price.
  • The daily MACD remains in continuing buy mode; PPO is still positive.
  • The On-Balance Volume (OBV ) has marked a fresh high, which is bullish and acts as a volume confirmation.
  • The RS Line against the broader NIFTY500 index has reversed its downtrend; it is now moving higher and it has crossed its 50-DMA.
  • The 50-DMA, which is presently at 121 has crossed the 200-DMA from below which is at 112 couple weeks back.
  • If the present pattern resolves on the expected lines, the stock may test the 148-150 levels. Any move below 122 will be negative for the stock.

Milan Vaishnav, CMT, MSTA
Consulting Technical Analyst

Disclosure pursuant to Clause 19 of SEBI (Research Analysts) Regulations 2014: the Analyst, his Family Members or his Associates hold no financial interest below 1% or higher than 1% and have not received any compensation from the Companies discussed.

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Milan Vaishnav
About the author: , CMT, MSTA is a qualified Independent Technical Research Analyst at his Research Firm, Gemstone Equity Research & Advisory Services in Vadodara, India. As a Consulting Technical Research Analyst and with his experience in the Indian Capital Markets of over 15 years, he has been delivering premium India-focused Independent Technical Research to the Clients. He presently contributes on a daily basis to ET Markets and The Economic Times of India. He also authors one of the India's most accurate "Daily / Weekly Market Outlook" -- A Daily / Weekly Newsletter,  currently in its 15th year of publication. Milan's primary responsibilities include consulting in Portfolio/Funds Management and Advisory Services. His work also involves advising these Clients with dynamic Investment and Trading Strategies across multiple asset-classes while keeping their activities aligned with the given mandate. Learn More
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