Technical Analysis

CanFin Homes (₹289.2): Buy

Yoganand D | Updated on December 27, 2018 Published on December 26, 2018

Investors with a short-term perspective can buy the stock of CanFin Homes at current levels. On Wednesday, the stock gained 4.5 per cent accompanied by above average volume and surpassed the key resistance at ₹280.

Since taking support at ₹220 in late September, the stock was on a sideways consolidation phase in the band between ₹220 and ₹280 until recently. The strong rally on Wednesday has strengthened the bullish momentum. Moreover, the stock trades well above its 21- and 50-day moving averages.

The daily relative strength index has re-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 indicators feature in the positive territory implying buying interest.

The short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹301 and ₹307 in the ensuing trading sessions. Traders with a short-term view can buy the stock with a stop-loss at ₹283.

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

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