Momentum Trading: Here's why NRB Bearings needs to be on your radar!

Momentum Trading: Here's why NRB Bearings needs to be on your radar!

by 5paisa Research Team Last Updated: Nov 17, 2021, 04:56 PM IST

The stock of NRB Bearings Limited has formed Doji candlestick pattern as of July 09, 2021, and thereafter witnessed correction. During the corrective phase, the stock has traded in a range of Rs 154.40-Rs 115 level. This resulted in the formation of a symmetrical triangle pattern on the daily chart.

On Wednesday, the stock has given Symmetrical Triangle pattern breakout on the daily chart. This breakout was confirmed by nearly 15 times of 50-days average volume, indicating strong buying interest by market participants. The 50-days average volume was 3.46 lakh while on Wednesday the stock has registered a total volume of 50.69 lakh. Further, the stock has formed a sizeable bullish candle on breakout day, which adds strength to the breakout. 

The stock is meeting Daryl Guppy’s multiple moving averages set up rules as it is trading above both the short and long term moving averages. These averages are all trending up, and they are in a sequence. Further, now the stock is meeting Mark Minervini’s trend template rules. The current stock price is above both the 30-week and 40-week moving average price line. The 10-week moving average is above both the 30 & 40-week moving averages. These two set-ups are giving a clear uptrend picture in the stock.
 

The Relative Strength Index (RSI), is currently quoting above the 70 mark on the daily chart and it has surged above its prior swing high. The weekly RSI has also given positive crossover and it has surged above its prior swing high. The daily MACD histogram is suggesting a pickup in upside momentum. On the daily timeframe, ADX is 20.14 which suggests that the trend is yet to be developed. Directional indicators continue in the ‘buy’ mode as +DI continues above –DI.

In a nutshell, the stock has registered a bullish pattern breakout along with volume confirmation. Hence, we would advise the traders to be with a bullish bias.

SENSEX
54,252.53
503.27 (0.94%)
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144.35 (0.90%)
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SENSEX
54,252.53
503.27 (0.94%)
Nifty 50
16,170.15
144.35 (0.90%)
Nifty Bank
35,094.90
755.40 (2.20%)

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