This PSU Bank stock meets the trend template of Mark Minervini
This stock has gained over 190% meets the trend template of Mark Minervini.
The stock of Canara Bank has formed a long-legged doji candlestick pattern on the last week of March 2020 and thereafter marked the sequence of higher tops and higher bottoms. From the low of Rs 73.65, the stock has gained 191.24% in 83 weeks.
For the last five weeks, the stock is making higher highs and higher lows. Interestingly, for the last three weeks, the volume was above 50-weeks average volume. Further, the current week’s volume is the highest ever. This indicates strong buying interest by market participants.
In the last couple of weeks, the stock has outperformed the frontline indices. Also, it has relatively outshined the Nifty 500 with a decent margin. The relative strength comparison with Nifty 50, Nifty PSU Bank and Nifty 500 is marking the higher high.
Currently, the stock is meeting the criteria of Mark Minervini's Trend Template. The current market price of the stock is above the 150-day (30-week) and the 200-day (40-week) moving averages. The 150-day moving average is above the 200-day moving average. Since the last 227 trading sessions, the stock is trading above its 200-day moving average.
The 50-day (10-week) moving average is also above both 150-day and 200-day moving averages. The current stock price is above the 50-day moving average. Also, the current stock price is nearly 161% above its 52-week low and currently, it is trading at its 52-week high.
As the stock is trading at its 52-week highs, all the trend indicators are showing that the uptrend to continue. The stock's Relative Strength Index (RSI) has reached its highest value in the last 14-weeks, which is bullish. Also, it has managed to close above its prior swing high after almost eight months. The weekly MACD stays bullish as it is trading above its zero line and signal line. The MACD histogram is suggesting a pickup in upside momentum.
The stock is clearly on uptrend and trend strength is extremely high. The Average Directional Index (ADX), which shows trend strength, is as high as 44.50 on a daily chart and 26.68 on a weekly chart. Generally above 25 levels considered as the strong trend. In both time frames, the stock is meeting the criteria.
Talking purely about the trading levels, the prior swing high of Rs 234 will act as crucial resistance for stocks and the level of Rs 191-Rs 186 will act as crucial support for the stock.
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