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Investors with a short-term perspective can buy the stock of V-Guard Industries at current levels. Since taking support at ₹160 in early October 2018, the stock has been on a medium-term uptrend.
The upmove encountered a key resistance at ₹235 in late December and the stock began to decline. Following a short-term corrective decline, it found support recently at a key base and also the 50 per cent fibonacci retracement level of the prior upmove at ₹200.
Witnessing buying interest, the stock jumped 3.5 per cent accompanied by an above average volume on Wednesday. Triggered by a positive divergence in the daily price rate of change indicator the stock appears to have resumed its uptrend. The daily and weekly price rate of change indicators are featuring in the positive territory implying buying interest.
The near-term stance is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹215 and ₹220 in the short term. Traders can buy with a stop-loss at ₹202.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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