Thomas Cook India (₹230.3)

The stock of Thomas Cook India surged 6 per cent with good volume breaching a key long-term resistance at ₹220 on Thursday. With this rally the stock’s short-term downtrend that was in place from the July 2017 peak of ₹254 appears to have halted at around ₹211 this week.

Taking support at ₹211, the stock has changed direction triggered by positive divergence in the daily price rate of change indicator. Moreover, the stock has a key support at ₹215 and 50 per cent Fibonacci retracement level of the prior uptrend also coincides at this level. The intermediate-term uptrend that has been in place from the December 2016 low of ₹178 is still in place.

The stock has gained 6.7 per cent so far in this week. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is heading towards the bullish zone 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 of Thomas Cook India. It can continue to trend upwards and reach the price targets of ₹240 and ₹245 levels in the short term. Traders can buy the stock with a stop-loss at ₹225.

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

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