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On Tuesday, the stock of Dolphin Offshore Enterprises (India) gained 8 per cent with extraordinary volume, breaching a key resistance at ₹70. Following a medium-term downtrend, the stock found support at ₹52 in late July this year. Subsequently, the stock changed direction triggered by positive divergence in daily relative strength index and moving average convergence divergence indicator. Since then, the stock has been on a short-term uptrend. While trending up, the stock decisively breached its 21- and 50-day moving averages last week.
After testing resistance at ₹70 for three sessions, the stock emphatically breached this barrier on Tuesday. The daily RSI features in the bullish zone and the weekly RSI has entered the neutral region from the bearish zone. The daily price rate of change indicator features in the positive terrain implying buying interest.
Short-term outlook is bullish for the stock. It can extend the up move and reach the price targets of ₹75.5 and ₹77 in the upcoming trading sessions. Traders can buy the stock with a stop-loss at ₹71.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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