Attached candlestick chart of ITC, exhibits that the stock has been trading in a more than a year old triangular consolidation, making a higher lows and lower highs which resembles a “Symmetrical triangle” and for which a breakout has been triggered on the higher side on the daily scales.
Gradual up move from the low of 178 (Feb 2016) towards the all time high of 354.80 (Jun 2017) resulted into above mentioned corrective phase and such a breakout shall be considered as a continuation of an uptrend.
In an event stock has also stepped above its four-five months old sideways congestion bands, for which the probability of further gains rises.
On a lower degree scales, stock is seen forming a higher highs and lows, which also confirms a sharp trending move on the upside in the near term.
Important oscillators are also favouring a buy setup, includes 14-period RSI which has crossed 60 levels and also heading higher, ADX (14) also showing strength in the ongoing momentum and MACD has already generated a fresh buy signal.
Gradual up move from the low of 178 (Feb 2016) towards the all time high of 354.80 (Jun 2017) resulted into above mentioned corrective phase and such a breakout shall be considered as a continuation of an uptrend.
In an event stock has also stepped above its four-five months old sideways congestion bands, for which the probability of further gains rises.
On a lower degree scales, stock is seen forming a higher highs and lows, which also confirms a sharp trending move on the upside in the near term.
Important oscillators are also favouring a buy setup, includes 14-period RSI which has crossed 60 levels and also heading higher, ADX (14) also showing strength in the ongoing momentum and MACD has already generated a fresh buy signal.