Technical Analysis

VRL Logistics (₹306.9): Buy

Yoganand D BL Research Bureau | Updated on November 21, 2018 Published on November 21, 2018

Investors with a short-term horizon can buy the stock of VRL Logistics at current levels. The intermediate-term downtrend from the key resistance level of ₹450 found support at ₹250 in early October. Triggered by a positive divergence in the daily relative strength index and price rate of change indicators, the stock changed direction in October. Since then, the stock has been on a short-term uptrend.

On Wednesday, the stock jumped 6.4 per cent breaking above a crucial resistance level of ₹294 which was capping the upside over the last one week. Wednesday’s rally has strengthened the stock’s short-term uptrend. It trades well above the 21- and 50-day moving averages. The daily relative strength index feature in the bullish zone, signifying bullish momentum. Moreover, the daily price rate of change indicator hovers in the positive territory implying buying interest.

The short-term outlook is bullish for VRL Logistics. It can continue to trend upwards and reach the price targets of ₹319 and ₹326 over the short term. Traders can buy with a stop-loss at ₹300.

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

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