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Investors with a short-term view can buy the stock of Asahi Songwon Colors at current levels. The stock has been in a long-term uptrend since taking support at around ₹108 in March 2016. Key support at around ₹280 provided base for the stock in early August. Subsequently, the stock resumed its uptrend and has been in a medium-term uptrend since then. On Tuesday, the stock ended its corrective decline and gained 4.8 per cent with above average volume. The stock currently tests resistance at ₹350 levels with positive bias. There has been an increase in volume over the past four trading session. Short-term trend is also up for the stock. The daily relative strength index has re-entered the bullish zone from the neutral region and the weekly RSI also feature in the bullish zone, backing the uptrend. Both the daily and weekly price rate of change indicators feature in the positive terrain implying buying interest. Overall the short-term outlook is bullish for the stock. It can exceed the current resistance level and reach the price target of ₹365 and ₹373 in the ensuing trading sessions. Buy the stock with a stop-loss at ₹343.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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