Technical Analysis

VRL Logistics (₹372.2)

Yoganand D BL Research Bureau | Updated on January 10, 2018 Published on September 26, 2017

Investors with a short-term perspective can consider buying the stock of VRL Logistics at current levels. The stock gained 6 per cent with good volume on Tuesday, breaking above the key resistance level of ₹360. This breakthrough has reinforced the bullish momentum as well as the medium-term uptrend. Since taking support in December 2016 at ₹260, the stock has been in an intermediate-term uptrend, forming higher peaks and troughs. Medium as well as short-term trends are up for the stock.

It trades well above its 21- and 50-day moving averages which is positive. There has been an increase in daily volume over the past two weeks. The daily relative strength index has re-entered the bullish zone from the neutral region while the weekly RSI continues to feature in the bullish zone. Both the daily and weekly price rate of change indicators are hovering in the positive territory implying buying interest.

The short-term outlook is bullish for the stock of VRL Logistics. It can continue to trend upwards and breaching above the immediate resistance level of ₹380. Targets are ₹387 and ₹395. Traders can buy with a stop-loss at ₹364.

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

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