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The stock of Sical Logistics gained 10.6 per cent with an above average volume, breaching a key medium-term resistance at ₹230 on Wednesday. This rally gives traders with a short-term perspective an opportunity to buy the stock at current levels.
Following a medium-term downtrend, the stock found support at around ₹200 in late September. Thereafter, the stock started to move sideways in the wide range between ₹200 and ₹230. Gaining bullish momentum, the stock decisively breached the upper boundary on Wednesday. Moreover, the stock has surpassed its 21-day moving average and trades well above it and also above the 50-day moving average.
The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is charting higher in the neutral region. Both the daily and weekly price rate of change indicators are featuring in the positive terrain indicating buying interest.
With the recent breakthrough of the key resistance, the short-term outlook is bullish for the stock. It can extend the rally and reach the price targets of ₹248.5 and ₹254 . Traders can buy the stock with a stop-loss at ₹233.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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