Bikaji Foods signals bullish momentum with horizontal trendline breakout

Technical indicators are pointing towards a bullish trajectory for Bikaji Foods International’s scrip. The snacking company’s stock has exhibited a horizontal trendline breakout on the daily scale, signaling potential upside.

According to Sudeep Shah, Head of Technical and Derivative Research at SBI Securities, “On Wednesday, the stock witnessed a horizontal trendline breakout on the daily scale, confirmed by robust volume. Additionally, a substantial bullish candle was formed on the breakout day, adding strength to the breakout.”

Technical Indicators showing that the volume backed horizontal trendline breakout

“Currently, the stock is trading above both its short and long-term moving averages. These averages are on a rising trajectory and are in the desired sequence, indicating a bullish sign,” added Shah.

Sudeep Shah also noted that momentum indicators and oscillators are supporting the overall bullish chart structure. MACD remains bullish, quoting above its zero line and signal line. The MACD histogram suggests a pickup in upside momentum. Moreover, other volume-based indicators like On-Balance Volume (OBV) and Money Flow Index (MFI) are also very strong.

These aligned technical factors favor the bulls. Therefore, Sudeep Shah recommends to accumulate the stock in the zone of Rs 545-550. On the upside, it is likely to test the level of Rs 585, followed by 600 in the short term. On the downside, the zone of 523-520 is expected to provide support in case of any immediate decline.

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