This large cap banking stock registered a trendline breakout on July 04! Know the targets

ICICI Bank soared over 2.30% on July 04

ICICI Bank emerged as one of the top gainer amongst Nifty stocks and climbed 2.30% to close at Rs 720.10 on Monday. Interestingly, the price structure of the stock is quite bullish, considering that the stock has registered a breakout from its falling trendline. Moreover, the stock formed a double bottom at the level of Rs 680, which is a bullish sign. On the technical chart, the stock has crossed above 20-DMA and 50-DMA level and also recorded good volumes.

As per the technical parameters, the stock possesses strong strength. The 14-period daily RSI (54.71) shows improved strength in the stock. The MACD histogram is rising steadily and shows good upmove. Also, the +DMI is above the -DMI, indicating an uptrend. Meanwhile, the Elder Impulse system has indicated a fresh buy, while the Relative Strength (RS) is in the bullish zone, indicating an outperformance against the broader market.

From its lifetime high of Rs 867, the stock has plunged about 16%. However, the stock has shown signs of recovery amid strong value buying interest. Considering the above points, the stock is expected to test upper levels. It has the potential to test the 200-DMA level of Rs 741 in short term, which is just 3% away. A strong move above this level can help the stock to test the level of Rs 778 in medium term. On a contrary, a fall below 20-DMA level of Rs 705 can be detrimental, however the chances of the downside are less as of now.

Recently, the financial stocks have been able to perform better compared to other sectors. It has helped the broader market to gain momentum and thus, the sector is expected to perform well in upcoming days. ICICI Bank, in particular, has performed well than other peers and has attracted traders. It provides good swing trading opportunities and traders can expect good gains in future.