Technical Analysis

Today's pick: Advanced Enzyme Technologies (₹256.7)

Yoganand D | Updated on February 06, 2018 Published on February 06, 2018

Investors with a short-term perspective and seeking to take a contrarian view can consider buying the stock of Advanced Enzyme Technologies at current levels. The stock was volatile and recorded an intra-day low of ₹222. However, taking support from this low the stock bounded up forming a hammer reversal pattern in the daily chart. This candlestick pattern is a bullish reversal pattern. Moreover, this pattern has happened at a significant long-term support level at around ₹250 which can provide near-term base to the stock. There has been an increase in daily volume over the past three trading sessions. The daily relative strength index is recovering from the oversold territory and the weekly RSI has entered the neutral region from the bearish zone. Taking a contrarian view the short-term outlook is bullish for the stock. It can extend its up move and reach the price targets of ₹267 and ₹273 in the coming trading sessions. Traders can buy the stock with a stop-loss at ₹251. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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