Strong Support From 200 EMA + Breaking Descending Trendline

22 Okt

✅The stock is currently testing a descending trendline that has been acting as resistance since August. A breakout above the 1900 level would confirm a reversal and signal a potential move toward higher levels. Traders should watch for a close above this trendline to confirm the breakout.

✅ The stock has successfully held above the 100 EMA and 200 EMA showing strength and a long-term bullish structure. The EMAs have provided solid support during recent pullbacks indicating that buyers are stepping in at lower levels.

✅ The stock has been consolidating between 1800 and 1900 for the past few weeks forming a base. This accumulation phase typically precedes a breakout as buyers accumulate shares in anticipation of a move higher.

✅ The RSI stands at 55 which indicates a gradual build-up in bullish momentum without being overbought. The RSI has been rising steadily suggesting that the stock is gaining strength and may see more upside if the trendline is broken.

✅Once the stock breaks above the descending trendline the next resistance will be around 2050 where previous highs are located. A successful breakout could push the stock towards 2200, representing a 15% upside from the current price.