Technical Analysis

Advanced Enzyme Technologies (₹248.1): Buy

Yoganand D BL Research Bureau | Updated on April 24, 2018 Published on April 24, 2018

Investors with a short-term perspective can buy the stock of Advanced Enzyme Technologies at current levels. After a medium-term downtrend from the key resistance level of ₹320, the stock found support at its 52-week low of ₹207 in late March this year. Subsequently, the stock changed direction, triggered by positive divergence in the daily relative strength index and has been in a short-term uptrend since then.

On Tuesday, the stock decisively breached a key resistance at ₹238 by gaining 5 per cent accompanied with extraordinary volume. This rally has strengthened the short-term uptrend. The daily RSI has entered the bullish zone from the neutral region and the weekly RSI continue to feature in the neutral region. Both the daily and weekly price rate of change indicator hover in the positive terrain implying buying interest.

Overall the short-term outlook is bullish . It can continue to move upwards and reach the price targets of ₹258 and ₹263 in the short-term. Traders can buy the stock with a stop-loss at ₹243.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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