Tata Coffee (₹134.6)

The stock of Tata Coffee jumped almost 4 per cent with good volume on Wednesday, breaking above a key resistance level of ₹132.

Since taking support at ₹85 in May 2016, the stock has been on a long-term uptrend. Following a corrective decline, the stock found support at around ₹110 in December 2016 and resumed its uptrend. It has been on an intermediate-term uptrend since then. Within this uptrend, the stock witnessed a prolonged sideways consolidation phase which was not that exiting for investors. But, the recent break above the key resistance at ₹132 has strengthened the uptrend and the stock has moved out of its consolidation phase. The stock trades well above its 50 and 200-day moving averages.

The daily and weekly relative strength indices have entered the bullish zone from the neutral region, reinforces the bullish momentum. Moreover, buying interest is seen as the price rate of change indicator feature in the positive territory. Both the long and intermediate-term up trends are intact. Outlook is bullish for the stock. It can continue the uptrend and reach the price targets of ₹140 and ₹143 in the short term. Traders can buy the stock with a stop-loss at ₹131.5.

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

Read the rest of this article by Signing up for Portfolio.It's completely free!

What You'll Get





MORE FROM BUSINESSLINE


 Getting recommendations just for you...
This article is closed for comments.
Please Email the Editor