Biocon - Monthly - Ascending Channel - Rebound & Breakout - LongBiocon Ltd. (NSE: BIOCON) has been consistently trading within a long-term ascending channel, with the channel Top and Bottom being tested multiple times over the years, as shown in the chart.
The Price has again bounced after touching the bottom of the channel and made a breakout from a descending trendline followed by a successful retest. The RSI trajectory is also bullish.
Key Points:
1. Ascending Channel: The stock has been moving within a well-defined ascending channel since 2013. The recent price action saw a strong bounce off the lower boundary of the channel, suggesting robust support at this level.
2. Key Support and Resistance Levels: The chart highlights multiple instances where the stock has found support at the bottom of the channel and faced resistance at the top. These levels have been tested several times, reinforcing the reliability of this trend.
3. Relative Strength Index (RSI): The RSI is currently at 64.77, trending upwards. This indicates bullish momentum and suggests that the stock could continue its upward movement. The RSI has consistently made higher lows and higher highs, which further supports the bullish outlook.
Breakout on Weekly Timeframe
The weekly chart shows a breakout from a descending trendline followed by a successful retest, confirming the bullish momentum. The RSI on the weekly timeframe is also in an upward trend, indicating strong momentum.
Disclosure: Invested at 338
Disclaimer: This analysis is for educational purposes and should not be considered financial advice. Always conduct your own research before making any investment decisions.
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