On Wednesday, the stock of Atlanta gained 4.6 per cent with above average volume surpassing a key resistance around ₹70. With this rally, the stock appears to have resumed its intermediate-term uptrend that has been in place from August 2013 low around ₹25. In mid-December 2014, the stock found support around ₹56 and bounced up. The stock’s 200-day moving average also provided base at ₹56 levels. Since then, the stock has been in a short-term uptrend. It is hovering well above its 21- and 50-day moving averages.
The relative strength index on the daily chart has entered the bullish zone from the neutral region. The weekly RSI has just entered this bullish zone backing the uptrend. Volumes are increasing over the past three trading sessions. The short-term stance is bullish. It can continue its uptrend and reach the price target of ₹76.5 and ₹78 in the upcoming sessions. Buy the stock with a stop-loss at ₹72.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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