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The stock of Finolex Cables gained 3 per cent on Wednesday, moving above its 21-day moving average line. There are signs of optimism. Traders with a short-term perspective can consider buying the stock at current levels.
Medium-term trend is down. But, since recording a 52-week low at ₹356 on February 18, the stock changed direction triggered by positive divergence in the daily relative strength index. The stock has been in a near-term uptrend since then. The daily RSI has entered the neutral region from the bearish zone and the weekly RSI is recovering from the oversold territory. Also, the daily price rate of change indicator features in the positive territory implying buying interest.
The weekly price rate of change indicator is also recovering from the oversold territory. There has been an increase in volume over the past two weeks.
The short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹410 and ₹417 in the upcoming trading session. Traders can buy the stock with a stop-loss at ₹385.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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