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The stock of Canara Bank gained 4.4 per cent accompanied by above average volume on Thursday, breaking above a key resistance at ₹265. This rally provides a good buying opportunity for the investors with a short-term perspective.
Following a medium-term downtrend, the stock found support at around ₹235 in early March this year. The stock once again took support at ₹235 in mid-May and reversed direction. Since then, the stock has been in a near-term uptrend. The stock has decisively breached its 21- and 50-day moving average resistances and trades well above them.
The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI continue to hover in the neutral region. Both the daily and weekly price rate of change indicators feature in the positive territory implying buying interest.
The short-term forecast is bullish for the stock. It can continue to trend upwards and hit the price targets of ₹283 and ₹288 in the approaching trading sessions. Traders can buy the stock with a stop-loss at ₹265.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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