Will Standard Chartered PLC Continue to Advance Post a Bullish Breakout?

Summary

  • Standard Chartered PLC (LON: STAN) gained 5.63 percent in the last trading session and soared ~13.40 percent in the last 7 trading sessions.
  • STAN’s price has broken a crucial resistance level and hit a new 52-week high.
  • The stock has also broken an ascending triangle pattern on the daily chart and taking major support from the Parabolic SAR indicator.
  • On the weekly time frame chart, the stock broke out of an inverse head and shoulders pattern (bullish reversal) and getting crucial support from the 50-period simple moving average.

Standard Chartered PLC (LON: STAN) shareholders have witnessed a steep rally from the low of GBX 470.20 made on 21 April 2021 to a new 52-week high of GBX 533.20 tested on 29 April 2021, a gain of ~13.40 percent in the last 7 trading sessions alone. On Thursday, the stock prices closed at GBX 521.60, up by 5.63%, and was one of the top gainers on the FTSE 100 index.

Standard Chartered PLC on the Daily Chart

Source: Refinitiv, Thomson Reuters; Analysis: Kalkine Group

On 29 April 2020, the stock price has broken out of an ascending triangle pattern on the daily chart at GBX 518.30 level and sustaining above the upper band of the pattern. The price registered a decisive break out of the triangle pattern that suggests a change in the trend from sideways to upward. The stock prices are sustaining above an upward sloping trendline support level of GBX 470 (black color line in the above chart) and continuously taking support of the same. The stock is trading in a strong upward trajectory, forming a series of higher tops and higher bottoms, which indicates bulls are having an upper hand. The volume in the stock has seen a sharp spike in the last trading session, which indicates higher involvement from the market participants.

On the technical indicators, front, the stock price is well placed above its 50-period SMA, acting as the important support at the lower end. The momentum oscillator RSI (14-period) is trading at ~65.91 levels, indicating a positive trend for the stock. The prices are trading above the Parabolic SAR indicator, acting as an immediate support zone below the upper band of the triangle pattern. MACD  (Moving Average Convergence Divergence) is also showing a positive crossover and supporting the price action.

Standard Chartered PLC on the Weekly Chart

Source: Refinitiv, Thomson Reuters; Analysis: Kalkine Group

As per the current chart structure analysis, the stock price has broken an ‘Inverse Head & Shoulders’ (bullish reversal) pattern at GBX 510.80 level on the weekly chart, and trading above the neckline of the pattern. Now, the price is approaching the downward sloping trendline resistance zone.

Besides, the price is trading above its 50-period SMA, acting as a crucial support zone near the right shoulder of the pattern. The price is trading above its Parabolic SAR indicator, acting as a support zone for stock. The momentum oscillator RSI (14-period) is trading at ~60.31 levels, indicating a possibility of further upside movement in the stock towards the resistance zone.

Based on the above chart analysis and technical indicators outlook, the Standard Chartered PLC price seems to be in an uptrend. Currently, the stock prices are approaching the key resistance levels. The chart pattern suggests that there might be more action expected in STAN if the price remains above the support levels in the coming weeks.


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