This midcap stock sees an ascending triangle pattern breakout! Do you own it?

This midcap stock sees an ascending triangle pattern breakout! Do you own it?

by 5paisa Research Team Last Updated: Jun 21, 2022, 12:15 PM IST

The stock of ASAHIINDIA registered a breakout from its ascending triangle pattern on June 21.

Shares of Asahi India Glass Ltd have soared over a massive 8% during the initial hours of Tuesday’s trading session. With the ascending triangle breakout, the stock has attracted strong buying interest as reflected in its volume. The volume is found to be greater than the 10-day, 30-day and 50-day average volume.

During the past few weeks, the stock had witnessed selling pressure and had plunged over 35% from its all-time high of Rs 613. However, the stock has seen a strong buying interest emerging at a lower level, as it has surged over 25% from its prior swing low of Rs 381. After today’s strong surge, the stock is above all the key moving averages.

The 14-period daily RSI (58.76) has crossed above its prior swing high. It points upwards and indicates strong strength in the stock. The trend indicator ADX (20.20) is pointing northwards and interestingly, has broken out from its falling trendline. Moreover, the MACD has indicated a bullish crossover. The On Balance Volume (OBV) is at its peak and demonstrates strong volumetric strength. The Elder Impulse System indicates a fresh buy. Meanwhile, TSI and KST indicators maintain their bullish view towards this stock. It is currently 8% above its 20-DMA, thus displaying strong bullishness.

In one month, the stock has climbed over 11% and has outperformed the broader market and most f its peers. Considering the above points, we expect the stock to trade higher in short to medium term. As per the price pattern, the stock is likely to test the level of Rs 500, followed by Rs 520 in the medium term. Keep an eye on this stock as it might provide good swing trading opportunities.

Asahi India Glass Limited is a midcap company, engaged in the manufacturing of glass in primary or semi-manufactured forms. With a market capitalisation of Rs 11700 crore, it is one of the strong growing companies in its sector.

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