Technical analysis: BSE Limited gives an ascending triangle breakout

Technical analysis: BSE Limited gives an ascending triangle breakout

by 5paisa Research Team Last Updated: Dec 10, 2022 - 10:31 am 46.3k Views
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BSE Limited on weekly charts gave ascending triangle breakout. Read on to find out more.

Post its listing in the last week of January 2017, BSE limited was in a bear run for almost three years. It was in the month of March 2020, when it made its all-time low of 256.45. In July 2020, the stock gave a long-term trendline breakout and also pulled back to take support on its long-term trendline in August 2020. This was followed by a good rally of higher tops and higher bottoms. During this rally, BSE Limited gave a lot of opportunities for market participants to make an entry.

Having said that, those who have missed all the previous opportunities to enter the stock can cheer now. This is because the stock is showing signs of one more such opportunity. On the weekly charts, the stock is depicting ascending triangle chart pattern. Moreover, the stock has already completed its pullback journey on lower timeframes such as 5-minutes and 15-minutes. However, is presently moving in a range-bound fashion between 1,575 to 1,640 levels on lower time frames.

An ascending triangle is a continuation bullish chart pattern. It is formed when the price moves in a somewhat horizontal line by connecting with the swing highs, and an ascending trendline connecting the swing lows. These two lines form a triangle like pattern, which is rising in nature. Breakout from this chart pattern, suggests the continuation of the bullish move.

The Relative Strength Index (RSI) witnessed a divergence when compared with the price action. Moreover, it is presently trading in an overbought region. The RSI on weekly charts is presently trading at 77.26 which is above its 9-Day Exponential Moving Average (EMA) of 74.44. MACD (Moving Average Convergence Divergence) is still trading above its signal line in positive territory. Bollinger Bands, on the other hand, is signalling a minor pullback that already has been initiated. To give you an idea, on weekly basis, the price is still trading above the upper band of the Bollinger band.

At the time of writing the price was trading at 1,543.65.

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