Technical Analysis

Talwalkars Better Value Fitness: Buy

Yoganand D | Updated on June 23, 2019 Published on June 23, 2019

Investors with a medium-term perspective can buy the stock of Talwalkars Better Value Fitness at its current levels. The stock sky-rocketed 15 per cent, accompanied by extra-ordinary volume on Friday, and closed at ₹56.7, decisively breaking above a key resistance at ₹50.

Moreover, the stock has breached the 50- and 200-day moving averages and hovers well above them. Since taking support at ₹30 in October 2018, the stock has been in an intermediate-term up-trend. While trending up, it had decisively breached a key resistance at ₹40 and continued to trend upwards. However, encountering a key resistance at ₹65 in April, the stock began to witness a corrective decline, which got arrested at ₹45 in mid-May. Subsequently, the stock resumed it up-trend, and has been in a short-term up-trend.

The recent breakthrough strengthens the up-trend, and the stock has the potential to trend upwards in the ensuing weeks. There has been an increase in daily volume over the past two weeks. The daily relative strength index has entered the bullish zone from the neutral region, and the weekly RSI features in the neutral region with a positive bias. Moreover, the daily price rate of change indicator hovers in the positive territory, implying buying interest.

The medium-term outlook is bullish for the stock. It has the potential to trend upwards and reach the price targets of ₹62 and ₹66 in the medium term. Investors with a medium-term view can buy the stock with a stop-loss at ₹52.

 

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