Comments
The stock of Jubilant Industries gained 8 per cent with extraordinary volume on Wednesday. Investors with a short-term perspective can buy the stock at current levels. Since taking support at ₹121 in February 2016, the stock has been on a long-term uptrend. However, after recording a new high at ₹418 in this February, the stock started to decline and has been on a medium-term downtrend since then.
The stock found long-term support in the band between ₹290 and ₹300 this week and bounced up. The daily relative strength index has entered the neutral region from the bearish zone and the weekly RSI continues to feature in the neutral region. Moreover, the daily moving average convergence divergence indicator is displaying positive divergence implying a potential trend reversal. As the stock is reversing higher from a key long-term support level and backed with positive divergence, we are bullish on the short from a short term perspective. The stock can extend its up move and reach the price target of ₹324 and ₹332 levels in the coming trading sessions. Traders can buy the stock with a stop-loss at ₹304.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.